Nowadays Woman Director Company are considered to be at par with men in every walk of life. Their significant contributions in every area are being valued and recognized. Their seamlessly multitasking abilities, emotional intelligence and a different perspective on various administrative, operational, functional as well as managerial decisions can help in taking an organization to the different level of success altogether.
In an effort to boost women entrepreneurship and bring them on board of Indian companies, various schemes for promoting women entrepreneurship have been introduced by the Indian government. Under these schemes, certain companies are required to have woman director mandatorily on the Board.
Mandatory Requirement for Woman Director
As per Companies Act and Rules, all listed companies and all Private Limited Company or Limited Company with a paidup share capital of Rs.100 crores or a turnover of more than Rs.300 crores ought to have a Woman Director Company on the board. Post incorporation of the company, the woman director is required to be inducted into Board of directors within six months of the date of company incorporation. However, a one-year timeline is given to the existing companies in order to fulfill the mandatory requirement of having at least one woman director in the company. Furthermore, Board of directors must fill any sporadic vacancy of a woman director in the next Board meeting within 3 months from the date of vacancy.
Requirement for becoming a Director
There are some prerequisites for becoming a Director of an Indian company which includes obtaining a PAN in case of Indian national and Director Identification Number (DIN). The eligibility criterion for becoming a director of a company include the age of the person which is required to be over the age of 18 years and the ability to contract. If a person fulfills the above requirements and matches the aforementioned eligibility criterion, he/she can be the director of the company irrespective of his/her education, expertise level, prior experience or knowledge, citizenship, nationality, residency requirement.
However, to become a managing director of a company the person must be between the age of 21 years and 70 years. This makes it clear that a woman can be a director in a company irrespective of her qualification and experience.
In most companies, an appointment of wives, daughters, and sisters of the promoters is acceptable i.e. the appointment of female family members as woman directors of the company is acceptable. However, this does not take away the responsibility of a director to work in the best interest of the company at all times.