Section 149 (1) of the Companies Act, 2013 mandates that every listed company and every public company having a paid-up share capital of Rs. 100 crores or more, or a turnover of Rs. 300 crores or more, shall have at least one woman director on its board.
Purpose: The purpose of this section is to promote gender diversity and inclusivity in corporate governance and decision-making.
Applicability: This section is applicable to every listed company and every public company having a paid-up share capital of Rs. 100 crores or more, or a turnover of Rs. 300 crores or more.
Timeline: The company shall appoint a woman director within 1 year from the date of commencement of the section or within 6 months from the date on which the company gets covered under this provision, whichever is later.
Exemption: This provision is not applicable to a private company, a one-person company, or a small company. The Central Government may also provide exemptions to certain classes of companies.
Penalty: In case of non-compliance, the company and every officer in default shall be punishable with a fine which shall not be less than Rs. 50,000 but which may extend to Rs. 5 lakhs. The company shall also be liable to pay an additional penalty of Rs. 500 per day until the default continues.
Due Date: The due date for compliance with this section is within 1 year from the date of commencement of the section or within 6 months from the date on which the company gets covered under this provision, whichever is later.
Forms: The company shall file the details of the appointment of the woman director in Form DIR-12 with the Registrar of Companies.
Reporting Authority: The Registrar of Companies is the reporting authority for this section.
