The Ministry of Corporate affairs in August, 2018 amended the companies (Account) Rules, 2014, issued under Section 134 of the companies Act, by inserting clause (X), which makes it mandatory for private companies to disclose compliance under the Sexual Harassment of Women at Workplace Act in their annual reports. The amendment was made to ensure safe work places for women.
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. 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, wherein non-disclosure attracts penal provisions.