Its executive director Shamsuddin Bardan said the quota may in fact work against women, giving people the negative perception that women directors are appointed just because of the quota system.
“It is good that the government wants more women as company directors.
“But to be a company director, appointments must be based on merit rather than gender,” he told FMT.
He was responding to Prime Minister Najib Razak’s remarks that the government would “name and shame” public-listed companies that have no female board members from next year.
“We will name and shame these companies.
“I can also threaten not to award them government contracts if they are really, really recalcitrant,” Najib said in his opening remarks at the Transformation 2050 (TN50) dialogue for women, held in conjunction with National Women’s Day.
He expressed confidence that such a move would lead to a dramatic increase in the number of women in such positions over the next few years.
As of last year, he added, public-listed companies had only recorded 16.8% of women in director positions.
This is 13.2% short of the government’s target of 30% women in decision-making positions.
Shamsuddin said the government should instead prepare more women to take up the position of company directors through proper training.
He said it was not easy to be a director as they are subject to joint liabilities under the Companies Act.
“Directors, be it in a private limited or public-listed company, have no limited liability. They may have to bear the companies’ financial liabilities in their personal capacity,” Shamsuddin said.
He added that the government should re-look the directors’ liability provision under the law.
“A director’s job is tough, as they have to bear responsibilities. Some men might even turn down the job when they know about the future responsibilities they need to bear.”