No independent woman director at 38% of NSE-listed cos

About 38 per cent of companies listed on the NSE would have to appoint at least one independent woman director if the recommendation of a highlevel panel on corporate governance were to be implemented, according to a report by Prime Database. Of the 1,670 companies listed on National Stock Exchange (NSE), as many as 637 firms need to appoint a woman independent director.

The panel headed by eminent banker Uday Kotak last week recommended that listed companies should appoint at least one woman as independent director.

The current rules require that there must be

one woman on the board, irrespective of her being an independent or executive director. The suggestion is aimed at increasing gender diversity, which is often seen to have a positive impact on the decision making processes of corporate boards.

"The Companies Act and Sebi Listing Regulations took a progressive step in requiring at least one woman director to be on the board of directors of listed entities. This was done as under-representation of women on boards was a significant concern in India," the panel noted.

All listed firms were required to have at least one woman director on their boards from April 1, 2015, according to a Sebi directive, as also under the Companies Act, 2013. The panel also recommended limiting chairmanship to only non-executive director. Currently, 640 companies have the same person as chairperson and MD.