Appointment of Women Directors for Companies

  • November 01, 2022
  • Dushyant Sharma
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Appointment of women directors of the company is now a mandatory concept. As per the companies act 2013, it is necessary for public or private companies to have at least one director who is a women. This has paved the way for further women empowerment in India. Read more about how it all matters through this blog.

Needless to say, we sort of live in a patriarchal society. A society where woman’s right is there for the show, but the reality of the matter is woman were not given equal rights in these matters. Notice how I said the word “were” here. The reason for that is now, women are not merely providing simple services for the companies, they are now involved with higher decision making authorities as well. All this has become possible because of the Appointment of Women Directors for Companies.  These laws have lead countries like Norway to have more than 45% of Directors as women. However, when you compare this count with India, the percentage merely stands at 4.7%. Even this scale has reached in this country courtesy of the Companies Act 2013.

Women’s inclusion in Companies Act 2013

As it is stated in the Companies act, it is now mandatory for appoint at least one woman director as the board member of company. However, this rule is still restricted to a certain types of companies. If there is any sort of non compliance with this rule, the fine of INR 10,000 is further extended to INR 1000 per day. This rule regarding Company incorporation in India has paved the way for many women to have a say in decision making matters of the company.

What are the criteria for inducting women in the board of directors of the company?

Whether the company is a public limited company or whether it is incorporated as a private limited company, it is necessary for them to at least one women director if any of the following criteria is filled:

  1. If the company is listed on any stock exchange
  2. If the company has a paid up capital of INR 100, 00, 00, 000 and the annual turnover is INR 300, 00, 000 or more than that.

What is the procedure to appoint a woman director of the company?

The procedure to appoint a woman is nothing to do with any special procedure, but everything to with the Company registration process in India.

Getting the director’s identification number

If a women wish to hold a position as the director of the company, then she has to go through all the normal conventions of a normal director. That means that they will have to apply for Director Identification number. This unique number is required for each and every director. Furthermore, if a woman is appointed during the process of company incorporation in India, then the DIN is generated at the time of company registration itself.

The DIR 2 form

When the company is already incorporated and a woman has to be made one of the directors of that company, then she needs to file a consent form for the same. This form if called the DIR-2 form. This form has to be filed to the Registrar of companies within 30 days of women’s appointment. There is an entire procedure pertaining to the addition and removal director of the company.

When it comes to the Role of women directors in the company, it is pretty much the same as men. They can either be appointed as a nominee director of the company or as an independent director of the company.

The rest of the rules associated with company directors are the same.


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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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