Private firms must disclose compliance in annual report: Govt

SETTING UP AN INTERNAL COMPLAINTS COMMITTEE TO LOOK INTO COMPLAINTS OF WOMEN EMPLOYEES IS ONE SUCH PROVISION

NEW DELHI: From now on, it has been made mandatory for private companies to disclose in their annual report if they have complied with all the provisions of the Sexual Harassment of Women at Workplace Act such as setting up internal complaints committee (ICC) to look into complaints of women employees.

The Union corporate affairs ministry through a notification on July 31 has amended the Companies (Accounts) Rules, 2014, issued under Section-134 of the Companies Act, by inserting a new clause which says that companies will have to provide a statement that they have complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The inclusion of the compliance under the Sexual Harass- ment of Women at Workplace Act in the non-financial disclosures will ensure that the issue gets into the focus into Board of Directors of the companies. Nondisclosure will invite penal provisions, a senior government official who did not want to be named said.

“It was long overdue and will go a long way in ensuring a safe workplace for women employee in the private sector,” said Bhaskar Chatterjee, former director general, Indian Institute of Corporate Affairs.

As of now, under the Companies Act, 2013, every firm is required to file annual reports where they have to mandatorily disclose details such as their assets, liabilities, salaries of directors.