The Ministry of Corporate Affairs recently notified the Companies (Accounts) Amendment Rules, 2018 (“Rules”) effective from July 31st, 2018. The Rules were amended as an outcome of a request made by the Ministry of Women and Child Welfare. In order to ensure safe workplaces for women in the private sector, the Ministry of Women and Child Welfare had requested the Hon’ble Minister for Corporate Affairs to mandate the disclosure regarding implementation of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSHAct”) in the Directors Report of every company. Vide its notification dated July 31, 2018, the Ministry of Corporate Affairs amended the Rules, issued under Section 134 of the Companies Act, by inserting the following:

“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”.

The Rules now require companies to include the above statement in the directors’ responsibility statement, which forms a part of the company’s Annual Report.

Under Section 4 of the POSH Act, an employer is required to constitute an Internal Complaints Committee in accordance with the provisions therein, to help address complaints with respect to sexual harassment of women at the workplace. The POSH Act also contains other compliances such as periodic trainings for employees etc.