Woman have the ability to make significant contributions to the Board of a Company, owning to their education and ability to multitask seamlessly. However, the representation of Women on the Board of Indian companies and women entrepreneurship is low.
Requirement for Woman Director:
The Woman Director must be inducted in to the Board of Directors within six months of date of incorporation of the Company. In case of existing companies, the mandatory requirement for woman director must be fulfilled within one year before 31st 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 are no educational or experience requirement for becoming a Director. Further, Directors are also not expected to be experts or have prior experience or knowledge to hold the position of Director.
- The person must be over the age of 18 years and must have the ability to contract.
- To become a Managing Director or a whole-time Director, the person must be over the age of 21 years and not more than 70 years of age.
Appointment of Family Member as Director:
In most companies, wives, daughters and sisters of the promoter are appointed as Director of the Company. The appointment of 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.