Draft norms for corporate gender parity soon
Corporate Affairs Minister Sachin Pilot says “there is a lack of gender parity in most of the workfield. Women have done enough work to prove their mettle. This (the bill) is just a first step we have embarked upon”
In an important step towards gender parity in the workplace, the government is framing guidelines for a new rule making directorship of women in company boards mandatory and these will be made public very soon, says Corporate Affairs Minister Sachin Pilot. But many women feel this step is too little, too late.
"We are already framing guidelines along with the chambers of commerce and industry stakeholders and once the draft rule is ready we will put it on our website to seek opinions. Following this the new rule will come in place. We will try to put the draft guidelines as soon as possible," Pilot told IANS. The guidelines will give the draft rules a proper shape.
Pilot said, "There is a lack of gender parity in most of the workfield. Women have done enough work to prove their mettle. This (the bill) is just a first step we have embarked upon."
The new Companies Bill holds that at least one woman be made a company board director. This has, however, evoked mixed reaction. There are some who feel that too little has been done towards giving women their rightful place in firms.
"Why ensure position of only one woman in a company? Is it a charity? What about other women who work in various other positions in a company?" asked Annie Raja, General Secretary, National Federation of Indian Women.
Akhila Sivadas, Executive Director, Centre for Advocacy and Research, said the need to have a rule was felt because women are bringing a lot of strength to many businesses.
"Professional role of women is changing. It cannot just be a male world. Specially the way business world is fashioning itself, can you ignore women? It makes sense for them to have more women on board," Sivadas told IANS.
Sivadas said there are also pressure groups, which contributed towards this decision, like the women's wing of many business advocacy organisations. "This decision has given some kind of policy shape to women's position. It was a conscious look at the diversity of the working mass by the government. It is a politically correct, progressive step. This will help bring some change to the pretence of diversity."
Review of governance practices, including women's position, in India's largest listed firms , the BSE-100
Women accounted for seven percent of all directors on BSE 100 companies in 2012
It was up from 5.5% in 2011, according to Spencer Stuart India Board Index 2012
In the US, women accounted for 17 percent of all independent directors in 2012.
Anasuya Gupta, chairman and managing director, CICO Technologies, said she was happy because at least the government had taken the first step. "If we see universally, in India women are far, far below compared to where women globally are," Gupta told IANS.
She pointed out it is important to have a "Venus aspect" in every company board as women have a different perspective and views on every matter.
Arun Duggal, chairman, Shriram Capital, who has started an initiative to train women directors, felt this decision is a good small step.
"It gives out a signal. But it is not a sufficient step. There are certain things in the bill which need to be made clear. It will take a while to become clear which type of company will need women directors," Duggal told IANS.
He, however, pointed out that the bill does not say whether 'woman director' also meant independent woman director. "If it has meant so then we might end up seeing wives and relatives of businessmen becoming board directors. But that will not solve the problems."
Duggal added: "The number of women representation is very low. Sixty percent of BSE 500 companies do not have any woman director. Just having a law without preparatory work could lead to a scramble to get women on the board."