Disclosure of compliance under the Sexual Harassment of Women at Workplace Act in the Annual Reports of Private companies now made Mandatory: Ministry of Corporate Affairs amends the Companies (Accounts) Rules, 2014.
Private companies will soon have to disclose their compliance with the Sexual Harassment of Women at Workplace Act in their annual reports. The Ministry of Corporate Affairs has amended the Companies (Accounts) Rules, 2014, to make it part of the mandatory non-financial disclosures in annual reports of private companies under Section 134 of the legislation wherein non-disclosure attracts penal provisions. Accordingly, all companies will have to provide “a statement that the Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013”, a panel meant to inquire into sexual harassment complaints filed by women employees. Section 134 lists the disclosure framework that directors of companies have to comply with in the annual reports.
“A statement that the Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013”.
While thanking Hon’ble Minister for Corporate Affairs, Smt. Maneka Sanjay Gandhi stated that, “this is a major step towards making the workplace safe for the women in the private sector”. Smt. Gandhi also stated that she will be requesting SEBI to suitably incorporate this disclosure in the Corporate Governance reports of the listed Companies. This will cast as ever higher responsibility on the Directors of these Companies for implementation of the Act.
It may be noted that Section-134 of the Companies Act, 2013 provides the disclosure framework which the Directors of every company are required to comply with in the Annual Reports. This section also includes the penal provisions for non-disclosure. The inclusion of the compliance under the Sexual Harassment of Women at Workplace Act in the non-financial disclosures will ensure that the issue gets into the focus into Board of Directors of the companies
The Ministry of Women and Child Development has been making continuous efforts to mainstream the implementation of the Sexual Harassment of Women at Workplace Act, 2013. Detailed Rules under the Act were issued. It was ensured that all the ministries/ departments under the central government as well as the organizations working directly under them constitute the Internal Complaints Committee as mandated under them Act. A number of instructions have been issued by the DoPT on the request of the ministry to provide immediate relief to the women working in central government against sexual harassment at workplace. The ministry has also empanelled a number of entities who can provide training to any organization on effective implementation of the provisions of the Act. The ministry has provided a facility to all working women to file complaints under this Act directly with the ministry through the SHE-Box.
Source- Press Information Bureau
Attached -Companies Act- Notification Under Companies Act