Module: | SEBI LODR & Corporate Governance Frameworks
Q36: Consider the following statements regarding the requirement of Women Directors on corporate boards under SEBI LODR Regulations for 2025:
1. The top 1000 listed entities by market capitalization are mandated to have at least one independent woman director on their Board of Directors.
2. Any casual vacancy of an independent woman director must be filled by the Board not later than the next board meeting or three months from the date of such vacancy, whichever is later.
3. The specific mandate for an independent woman director does not automatically extend to all unlisted private limited companies under the Companies Act.
Which of the above statements is/are correct?
2. Any casual vacancy of an independent woman director must be filled by the Board not later than the next board meeting or three months from the date of such vacancy, whichever is later.
3. The specific mandate for an independent woman director does not automatically extend to all unlisted private limited companies under the Companies Act.
Which of the above statements is/are correct?
✅ Correct Answer: D
🎯 Quick Answer:
D. All statements 1, 2, and 3 are correct.Structural Breakdown: Statement 1 is correct; SEBI strictly enforces the independent woman director rule for the top 1000 listed entities.
Statement 2 is correct; the timeline for filling the casual vacancy is exactly the next board meeting or 3 months, whichever is later.
Statement 3 is correct; while certain large unlisted public companies must have a woman director under the Companies Act, there is no blanket mandate for all private limited companies to have an independent woman director.
Historical/Related Context: Initially, the law only required a "woman director," which led to promoters appointing their female relatives to comply.
SEBI subsequently elevated the requirement for top entities to require an "independent" woman director to ensure genuine diversity and professional oversight.
Causal Reasoning: Mandating an independent woman director breaks the traditional "old boys club" dynamic of corporate boards, fostering more comprehensive risk discussions and protecting minority shareholders from groupthink.