Document Type

Article

Disciplines

International Law

Abstract

India's Companies Act of 2013 was an "[a]ct to consolidate and amend the law relating to companies."1 As part of this amendment, India enacted board diversity requirements, recognizing the importance of diversity in the board room. Section 149 of the Companies Act of 2013 and subsequent amendments call for at least one woman director to serve on the boards of publicly-traded companies and companies meeting certain statutory specifications. 2 For the top 1,000 listed companies in the country, this woman is required to be independent, meaning she cannot be related to individuals in the company through familial or marriage ties.

While the enactment of Section 149 represents a positive change for Indian society, it suffers from a fatal flaw: its definition of diversity includes only women. Now, a little over ten years since the Companies Act of 2013 was first enacted, this Note proposes it is time to amend the law to mandate the top 1,000 listed companies in India to include one Scheduled Caste individual on their boards. In 2025 and beyond, the government cannot allow the caste system to continue cast(e)ing lower caste individuals out from the board room.

This Note argues that India should amend Section 149 and other relevant provisions of the Companies Act of 2013 to mandate adding one Scheduled Caste individual to the boards of the top 1,000 listed companies. Part II explains the caste system and its significance to Indian culture. Part III provides background onboard diversity law in India. Part IV discusses the business benefits of caste diversity on boards. Part V addresses why shareholder activism is insufficient to motivate companies to place Scheduled Caste individuals on their boards without a mandate. Part VI proposes such a potential mandate, discussing both possible formation and implementation as well as specific language. Finally, Part VII discusses how to ensure the continued success of such a mandate.

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