Effectiveness of the One-Woman Board Member Mandate under the Companies Act 2013

6 Pages Posted: 18 Jan 2023 Last revised: 3 Mar 2023

See all articles by Muskan Madhogaria

Muskan Madhogaria

O. P. Jindal Global University, Jindal Global Law School (JGLS)

Devika Garg

O. P. Jindal Global University, Jindal Global Law School (JGLS)

Date Written: October 23, 2022

Abstract

After various corporate frauds that hit India in the early stages of last decade like the Satyam Computers Scam, 2G Spectrum Scam, Vijay Malaya Scam, to name a few the need for improved corporate governance for the personal reassurance for public good became a necessity. Simultaneously, The Companies Act, 1956 was undergoing a drastic change as the Companies Act (Amendment) Bill, 2012 was tabled in the Parliament, which eventually gave birth to the Companies Act, 2013. This Bill, apart from the various amendment that it proposed, also attempted to alter the customary Indian mentality that confined a woman’s potential by suggesting the mandate of one women board member, if the concerned company has paid- up share capital of one hundred crore rupees or more; or turnover of three hundred crore rupees or more. Through the initial part of this paper we understand that how the one woman on board quota came into being in India as a positive influential trend from myriad countries all over the globe. Following that we try to comprehend the extent of adaptation of the said rule in India given its socio-cultural angle which stands at a stark contract with its European counterparts. Furthermore, after analysing the current lacunas in the legislation we suggest various approaches which would be a good option for India to adopt making the one women board member rule more air-tight, effective, and ensure performance in congruence with its rationale.

Keywords: Companies Act, 2013, Critical Mass Theory, S.149(1), Women Director Mandate, Women rights, Affirmative Action, Statistics, Nepotism

Suggested Citation

Madhogaria, Muskan and Garg, Devika, Effectiveness of the One-Woman Board Member Mandate under the Companies Act 2013 (October 23, 2022). Available at SSRN: https://ssrn.com/abstract=4324821

Muskan Madhogaria (Contact Author)

O. P. Jindal Global University, Jindal Global Law School (JGLS) ( email )

Sonipat
New Delhi, Uttar Pradesh/Haryana
India

Devika Garg

O. P. Jindal Global University, Jindal Global Law School (JGLS) ( email )

Jindal Centre 12 Bhi12 Bhikaiji Cama Place
New Delhi, Uttar Pradesh/Haryana
India

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