CORPORATE GOVERNANCE AND ROLE OF WOMEN DIRECTORS UNDER THE COMPANIES ACT, 2013
The New Companies Act 2013 is path breaking in many ways. The focus of the new Act is on stronger governance, transparency and accountability and the important aspect of governance and management is a strong and competent board of directors. There is an extremely enhanced role for directors in the new Companies Act. Independent directors and express provisions pertaining to them have been defined in the new act. The companies with the goal of composing boards with integrity and expertise are dipping into new pools of candidate including women. Yet some of the large companies still have no women directors. Section 253-322 of the Companies Act 1956 concern with appointment of directors and other aspects. Various reforms have been made in the framework of board. Their focus lies on studying some position and so their attention goes to clause 149(1) of Companies Act 2013. the clause 149(1) States that : Every corporation shall have a Board of Directors consisting of individuals as directors and shall have. At least three, two, one directors in the public, private and person company respectively and; A company may appoint maximum of fifteen directors after passing special resolution and shall have at least one women director. Psychotically, it can be stated that where women are involved, company seems to have positive energy and employees are more focused toward their respective work. The absence of women on Corporate boards is embarrassingly observable. Only 4% of some directors are listed in Indian Companies. This insufficiency of women at peak level in business in now termed as a “brain drain” and a crisis of talented retention. The authorities as well as government should understand the necessity and capability of women and promote gender equality. The researcher examines two points for study, First, the reason for under-representation of females in the Indian Corporate board rooms and second, the impact of having Female Directorship in Companies. This research paper analysis the situation of employment of Women Directors and Women Independent Directors in India and article also critically examines the Corporate reaction to legislative provision to section 149(1) of Companies Act of 2013 which mandates the inclusion of at least one Woman Director on the Board of Directors. In the end of the paper provides from some suggestion that can be implemented in furtherance to the amendment that has been brought.