Analytical Glimpse Of The Provisions On The Independent Directors And Women Directors Under The Companies Act, 2013
Nandita Agarwal, B.B.A. LL.B., Symbiosis Law School, Noida
INTRODUCTION
According to the Indian Companies Act of 2013,1 both independent directors and women directors must fulfil certain requirements. Women directors are accountable for fulfilling the company's goals while guaranteeing equal opportunity for women employees, whereas independent directors are supposed to act objectively and independently of the company's management and majority shareholders.
The roles and responsibilities of both independent and female directors are spelled out in great detail in the Companies Act of 20132. Under the Act, Section 149 lays down various provisions which includes the mandate of 1/3rd directors to be the independent directors and the necessity to have a minimum of one director who is a woman. Directors who are not employees of the company have a special duty to look out for the shareholders' best interests and act in their best interests. Similarly, women board members have a responsibility to promote gender parity in all areas of employment, including hiring, training, compensation, and advancement. Additionally, they need to make sure that women are given opportunities to rise in the company and that the proper rules and processes are in place to make that happen. Women on the board also have an obligation to address and resolve any issues brought up by female employees and to ensure that the company complies with applicable gender equality laws and regulations. They also have the responsibility of making sure the business follows the requirements of the 2013 Act to Prevent Sexual Harassment of Women in the Workplace.
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