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.
Women and Child Development Minister Maneka Gandhi termed it “a major step towards making the workplace safe for women in the private sector”. She added that she would request SEBI to incorporate this disclosure in the corporate governance reports of the listed companies.