WHY ARE WOMEN

DIRECTORS NEEDED?
 REASONS FOR THE NEED OF
WOMEN DIRECTORS

Psychological Reasons Statutory Reasons

 PSYCHOLOGICAL REASONS
• BETTER COMMUNICATORS:
Women are better listeners than men, and this is exactly the
skill that is most critical for managing employees and
customers. Employees want their managers to hear their point
of view, and customers want everyone to empathize with their
problems.

• BETTER AT ACTIVATING PASSION:

Women are astute and hence activate passion in their
employees easily. They watch the 43 muscles on your face and
mould the situations accordingly.

Contd.
 PSYCHOLOGICAL REASONS
• STRONGER BUSINESS ETHICS:
Research shows that men tend to have more lenient ethical
standards than women, which is a challenge for sustainable
business. A strong moral code is necessary to deal with
ethical challenges.

• MORE PATIENCE:
A study commissioned by my Hermes shows that women are
willing to wait longer for a desired result. The winners are the
ones that can be patient enough to take actions.

Contd.
 STATUTORY REASONS
AS PER SECTION 149(1) OF THE COMPANIES
ACT, 2013

Following class of company shall appoint at least one

Woman Director
• Every Listed Company
• Every other public company having -
Paid up share capital of INR 100 Crores or more; or
Turnover of INR 300 Crores or more on the last day
of latest audited financial statements
Contd.
 STATUTORY REASONS

AS PER CLAUSE 49 OF THE LISTING AGREEMENT

OF SECURITIES AND EXCHANGE BOARD OF INDIA

• The Board of Directors of the company shall have an

optimum combination of executive and non-executive
directors with at least One Woman Director.
 PENALTIES OR ACTION ON
CONTRAVENTION
• SECTION 172 OF THE COMPANIES ACT, 2013 :
Fine Imposed on contravention of the Section 149(1)
The company and every officer of the company who is in
default shall be punishable with fine which shall not be less
than Rupees 50,000/- but which may extend to Rupees
500,000/-.

• NON-COMPLIANCE WITH THE REQUIREMENT OF

CLAUSE 49 OF LISTING COMPANIES OF SEBI :
For any non-compliance beyond September 30, 2015, SEBI
may take any action against the non-compliant entities,
their promoters and/or directors, as considered appropriate .
 FEW EXAMPLES OF NATIONAL AND
INTERNATIONAL WOMEN DIRECTOR

CHITRA RAMKRISHNA, MD & CEO,

NATIONAL STOCK EXCHANGE

INDRA NOOYI, CEO,

PEPSICO
• COMING OFF AS BOSSY:
While being bossy is seen as a sign of bad leadership in both
men and women, it is more strongly seen as a mean and
unlikable trait for women.

• COPING WITH FEAR OF FALIURE:

Fear of failure is a concern for all entrepreneurs. But, women
fear failure more. Especially, when a woman has a stable job
with a big salary, good benefits and a venerable socioeconomic
status.
.
Contd.
• UNINTENTIONALLY DOWNPLAYING ONE OWN’S
WORTH :
A recent study reveals that women undervalue their
accomplishments when they work in a group with men.
Women in a group tend to associate with ‘we’ more than ‘I’,
showcasing themselves a lot less.

• BALANCING BUSINESS AND FAMILY LIFE:

Striking a perfect balance between family life and work life
has been a challenge to both women and men. But women are
often given the message that you can’t have it all.
Contd.
 CONCLUSION

• Although gender diversity has been

addressed through initiating a move
towards women on board. Failure to
address such gender diversity would lead
to serious economic consequences in
future.
 BIBLIOGRAPHY
• http://www.legalservicesindia.com/article/1717/Appointment-
of-Woman-Director.html
• https://www.vtiger.com/blog/6-unique-challenges-that-women-
in-business-face-and-how-to-overcome-them/
• www.catalyst.org
• www.mca.gov.in
• https://www.apa.org/research/action/speaking-of-
psychology/women-leaders
• others