Effectiveness of the one-woman board member mandate under the Companies Act 2013

Madhogaria, Muskan and Garg, Devika (2023) Effectiveness of the one-woman board member mandate under the Companies Act 2013. [Working papers (or Preprints)] (Submitted)

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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.

Item Type: Working papers (or Preprints)
Keywords: Companies Act, 2013 | Critical Mass Theory | Women Director Mandate | Women rights | Affirmative Action | Statistics | Nepotism
Subjects: Social Sciences and humanities > Business, Management and Accounting > General Management
Social Sciences and humanities > Social Sciences > Law and Legal Studies
JGU School/Centre: Jindal Global Law School
Depositing User: Arjun Dinesh
Date Deposited: 24 Apr 2023 17:37
Last Modified: 24 Apr 2023 17:37
Official URL: https://ssrn.com/abstract=4324821
URI: https://pure.jgu.edu.in/id/eprint/5855

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