WOMEN DIRECTOR-An Emerge
27 Aug 2020
How women can influence the boards and Why more women in Boards? is certainly a thought to contemplate. The Securities and Exchange Board of India (SEBI) had asked companies to appoint at least one woman director before April 1, 2015, according to rules set by the Companies Act 2013. Appointing women directors from the promoter family, just to comply with the mandate is against the spirit of the company law. The rationale behind the law is to not only bring gender diversity to the boardroom, but the women director should also be able to offer professional guidance.
India is the first country amongst the developing nations, that has chosen to make representations of women on company boards mandatory.
The move was aimed at improving gender diversity in boardrooms. India ranks 120 among 131 nations in terms of female labour participation according to the International Labour Organisation (ILO). This is a statistics that strongly indicates the gender differences and opportunities. With the 48% of the Women population in the Country, Women is the most untapped resource which, if utilized to its full extent can lead the growth of Indian Economy. It has been termed as a revolutionary provision, and a step towards empowerment of women, in real terms. With the Securities and Exchange Board of India (SEBI) act, in recent years there has been an increased presence of women in boards. As per PROVISIONS OF Companies Act, 2013, the following class of companies are required to appoint at least one Woman Director-
(i) Every listed company.
(ii) Every other public company having –
(a) Paid–up share capital of 100 Crore rupees or more.
(b) Turnover of 300 Crore rupees or more.
Why Women Director will have impact on Board?
Women are careful, detail driven, and prudent in their reviews. They also are patient and have better communication skills. All of this makes for improved interaction among board members. Women bring a critical eye to the proceedings. They are expressive in their opinions.
Presence of even one woman on Board changes the Board Dynamics. Woman tend to be more careful and conscientious in their work. Women are more strategy-oriented. They tend to look at where the company is heading, whether things are on the right track, and why the company might be diverging from its strategic goals. Women are more focused on ethics and conduct. They are less tolerant of corruption and conflicts of interest. They are importantly willing to take hard decisions.
Women tend to be more holistic, think more broadly and be more attuned to environmental and social concerns. Women on Boards being highly educated and experienced are perceived by other women stakeholder and consumers as Role Models and Cultural Change Agents.
Successful women encourage women at all levels to challenge their situations and empower them to grow in their chosen field. They groom future Directors from within
How Women Directors can add value by sharpening her skills?
Increasing the participation of trained women directors on corporate boards inspires heated debate around the world. Research has shown that the inclusion of female directors has a direct and positive impact on a company’s profits and risk management. Women board directors also broaden a company’s market knowledge as well as raise its profile.
The increased visibility of women at the senior level plays a catalytic function with these women viewed as role models and cultural change agents. This helps empower women at all levels. Women who seek board positions should work on building their business knowledge base. They should groom themselves on the business matters and communications. Attend annual meetings and importantly speak up on business issues. This will help them attract attention.
Women also should work on improving their ability to analyze the macro issues. Women also should become more sensitive to economic trends. If they could combine their detail-oriented nature with a broader industry focus, the combination would be extremely powerful.
When a well-prepared and well-qualified woman has a position on a board, it has seen translating to actual improvements in the operational results. The board functions better, and the quality of the debate and the decision making is better.
Women should prepare for board positions by seeking the appropriate education, experience and equipping themselves with appropriate skills. They need to challenge themselves to move into top level management jobs. If unqualified women occupy board seats, it can be derisive to the company status as well remaining unacceptable to qualified women.
Impact on nation as whole
The report titled, 'Women on Boards: a Policy, Process and Implementation Roadmap' by law firm Khaitan & Co in association with Biz Divas, a National Network of professional women showed that, amongst the 1470 public listed companies, the number of Women Directors on board were only 350, representing only 4% of Independent directors on Board.
The report said that if organizations wish to remain competitive, they need to capitalize on the tremendous advantage and potential that women leaders bring to the business. Companies will need to optimally utilize their human resources. Ensuring adequate representation of women across their boards will be a significant step in this direction. Along with this, changes also need to be made at the grassroots level so that gender stereotypes are broken down.
Do you think, you can make a difference in the boardroom and want to sharpen your skills,? Then come and join our forthcoming Boardroom Mastery Certification Program on 22nd & 23rd July, 2022.
For more details contact Ms Neha Shah: 9727752207 & Priyanka Lalka: 9428310538