Y.S. RANA, CHANDIGARH—AUG 29–Empowering women through the companies Act think many in the corporate world. Empowering women and achieving gender equality have inspired the central government to tailor existing policies to realize women’s empowerment. This will increase the scope of women empowerment in corporate world and be useful in combating many problems in respective areas.
While talking to India Post Dr Raj Singh, Registrar of Companies, Punjab and Chandigarh, revealed that up to December, 2011, there were 10,66,102 registered companies consisting 9.68.560 private companies and 97.542 public companies across the country. Now the number may have crossed the mark of 12 lakh. Under the provision of the Companies Act-2013, there must be one woman director in the board of directors of every company to ensure gender diversity. According to the GMI Ratings’ Women on Boards Survey 2013, even on the world’s best-known companies, women account for only 11 percent of total directorships. In India, a sample of 89 companies with more than $ 1 billion in market valuation, the women percentage was found less than 7 percent
He further stated that there were about 12 per cent of limited companies (over a lakh) and appointment of a woman director in each company, there would be over one lakh women directors. If each and every company appointed a woman director, then the number of woman directors would go up to 12 lakh and contributing to inclusive growth of women.
Noted chartered accountant Mr Anil Khanna said that the entry of female directors on the board of companies would help bring in new and creative thought process in managing marketing challenges, empathy in handling various HR issues, curbing and effectively managing sexual harassment incidents at work places. Former executive vice president of HDFC Bank and now a full-time social activist, Neena Singh says that the Bill augurs well for women empowerment as it states that it is important for corporate boards to ensure gender diversity. “We are talking only about the biggest companies here. Clearly, major efforts will have to be made to search more woman directors from the corporate sector and bring them on board.”
Charanjit Singh who runs a PR agency deals with big corporate houses said that in the present day large number of women joined corporate world, appointment of women in board of directors in the companies would ensure security of women workers and boost their morale. However, a modern law does not by itself become a great law, for success depends on implementation.
There may be some pitfalls but India has a brand new company law that’s more appropriate for the 21st century and its challenges. Several things will change for the Indian corporate sector, said Neena Singh.