Due to their education and ability to multitask seamlessly, women can make significant contributions to a company’s board. However, the representation of Women on the Boards of Indian companies and women entrepreneurship is low.
Requirement for Woman Director:
The Woman Director must be inducted into the Board of Directors within six months of the Company’s incorporation date. In the case of existing companies, the mandatory requirement for a woman director must be fulfilled within one year before 31 March 2015. Further, any intermittent vacancy of a woman Director must be filled by the Board of Directors at the next Board Meeting, not later than three months from the date of vacancy.
Requirement for Becoming a Director:
- To become a Director in an Indian Company, the applicant must first obtain a PAN (in case of Indian National) and DIN (Director Identification Number).
- There is no educational or experience requirement for becoming a Director. Directors are also not expected to be experts or have prior experience or knowledge to hold the position.
- The person must be over the age of 18 years and must have the ability to contract.
- To become a Managing Director or a full-time Director, a person must be over 21 and not more than 70 years old.
Appointment of Family Member as Director:
In most companies, the promoter’s wives, daughters, and sisters are appointed as directors. The appointment of a woman Director who is also a family member is acceptable. However, a Director of a Company is an agent of the Company who must act in the best interest of the Company at all times. Further, as Trustees of the Company, all Directors must hold the company’s
properties with utmost trust and manage the affairs of the Company for the benefit of the shareholders.
