Gender Gap in Government Boards: 179 Firms Miss Women Directors
179 government-owned firms fail to comply with a legal requirement to appoint women directors under the Companies Act, 2013, affecting over a quarter of these entities. Despite the mandate, administrative reasons and company-specific challenges are cited for this non-compliance, with no central data on penalties maintained.
- Country:
- India
A significant number of government-owned companies are not meeting legal mandates to have women directors on their boards. A government announcement revealed that 179 firms have yet to comply with the Companies Act, 2013. This regulation requires certain companies to include at least one woman in board roles.
The Companies Act dictates that every listed company and other public entities with substantial paid-up capital or turnover must appoint a woman director. However, 179 out of 708 such entities have not adhered to this rule. The shortfall has been attributed to both company-specific issues and administrative challenges, according to Harsh Malhotra, Minister of State for Corporate Affairs.
No specific timeframe for compliance was disclosed, and no centralized data on penalties was available. Till mid-March of this fiscal year, government data shows 668 women compared to 3,423 men serving as directors in these companies.
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