Toys In The Attic
A recent article in The Economic Times attracted my attention. The ministry of company affairs wants companies with five or more director to have at least one woman director.
The case may be resting on grounds of gender equality and also social justice to an extent. (Not to mention all the justice missed in women atrocities cases.)
I wonder about two dimensions here. Our country ( and the world too) is male dominated and here women account for less than 5% of board members in India, and these too, mainly from promoters families.
Is there a place for independent directors and will they be accepted as well in active role?
The second dimension is of selection of independent directors. Are there any qualifying criteria of Merit? If yes, then what will be that?
Promoter run companies believe in selecting directors from known circuit of family and close knit friends. Retired bureaucrats and celebrities too fall in the same group.
And too top it all; will the independent director have her say?
It’s so important to get new, fresh diversity on board .As the famous bestseller, “The wisdom of crowds “mentions that diversity will bring quality. Diverse groups may generate differences but it also brings quality of judgments and variety of options related to it.
I am a firm believer that improving women’s stature in India will require much more work with reforms and not just amended laws.
So far professionalism of promoter run companies goes, will this law work and get better corporate governance?
I will let my readers reply that.

