Penalty of Rs. 1,71,500 for Non-Appointment of Women Director

As per an order issued by the Ministry of Corporate Affairs (MCA), Caparo India Limited has been fined with Rs.1,71,500 for violating Section 149(1) of the Companies Act, 2013, which requires specified companies to appoint at least one woman director on the Board of Directors.

Understanding Section 149

As per Section 149, every company shall have a Board of Directors consisting of individuals as directors and shall have:

(a) A minimum number of:

• Three directors in case of a public company
• Two directors in case of a private company
• One director in case of a One Person Company

(b) A maximum of fifteen directors after passing a special resolution provided that such class or classes of companies as may be prescribed, shall have at least one woman director.

Understanding Rule 3 of the Companies (Appointment and Qualification of Directors) Rules, 2014

The following class of companies must appoint at least one woman director:

• Every listed company
• Every other public company having either the paid-up share capital of Rs. 100 crore or more, or the turnover of Rs. 300 crore or more.

These companies are required to appoint a woman director within six months from the date of incorporation, if newly incorporated. In case of a vacancy, the company shall fill it up by the Board at the earliest but no later than the immediate next Board meeting or three months from the date of such vacancy, whichever is later.

About the company

Caparo India Limited is a registered company under the provision of the Companies Act, 1956. The company’s registered office is located at 1007 – 1010, 10th Floor, Kailash Building, 26 Kasturba Gandhi Marg, New Delhi, Central Delhi – 110001, India.

Due to the non-compliance of Section 149(1) of the Companies Act, 2013, the company is directed to pay the penalty of Rs. 1,71,500 within 90 days of receiving the order using the MCA portal. The company has the right to appeal the order within 60 days to the Regional Director (NR), Ministry of Corporate Affairs, New Delhi.

Refer to the official order for more information