Dated :- 04/12/2015
More than 2,000 companies, including PSUs, have failed to appoint women directors on their boards while prosecution has been launched against 121 unlisted firms for non-compliance, the government said today.
Certain class of listed and unlisted companies are mandatorily required to have at least one woman director on their boards under the new companies law.
Corporate Affairs Minister Arun Jaitley today said 1,707 listed companies, including public sector undertakings, do not have women directors.
Besides, there are 329 unlisted private and public sector firms without a woman director on their boards.
"Prosecution has been launched against 121 defaulting unlisted companies (other than PSUs)," Jaitley said in a written reply to the Lok Sabha.
Capital markets regulator Sebi had prescribed fines on listed companies, other than public sector undertakings (PSUs), between Rs 50,000 and Rs 1,42,000, depending on the period of default from April 1 - October 1, 2015.
Besides, a daily fine of Rs 5,000 is being imposed for continued violation after October 1.
"Sebi had requested the government to advise the concerned administrative Ministries to take appropriate steps for ensuring compliance by defaulting listed PSUs," Jaitley said.
Thousands of corporates are required to have at least one woman director on their Boards under the provisions of the Companies Act, 2013, by end of March this year.
Every company having paid-up share capital of at least Rs 100 crore or a minimum turnover of Rs 300 crore is required to ensure compliance. Most provisions of the Companies Act, 2013 came into effect from April 1, 2014.