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CA Foundation · Business Laws · The Companies Act, 2013

Kavya Textiles Ltd, a listed public company, is appointing a woman director to meet the statutory requirement. Which statement correctly describes the requirement for the Board of Directors?

Every listed public company must have at least one woman director on its board. This is a prescribed-class requirement under the Companies Act, 2013. It does not depend on the board having more than fifteen directors, and it is not confined to unlisted companies.

  1. AEvery listed public company must have at least one woman directorCorrect
  2. BOnly companies with paid-up capital above Rs 100 crore need a woman director
  3. COnly unlisted public companies must have a woman director
  4. DA woman director is needed only if the company has more than 15 directors

Explanation

The Act requires prescribed classes of companies, including every listed company, to have at least one woman director. Companies also meeting the prescribed paid-up capital or turnover thresholds are covered. Therefore the option limiting the rule to unlisted companies, or to boards with more than 15 directors, is incorrect.

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