In a significant move to strengthen workplace accountability and inclusivity, the Ministry of Corporate Affairs (MCA) has issued the Companies (Accounts) Second Amendment Rules, 2025, via its circular dated May 30, 2025. Effective July 14, 2025, the amendment introduces mandatory disclosures in the Board’s Report pertaining to compliance with the POSH Act, 2013 and the Maternity Benefit Act, 1961.
Key Highlights of the Amendment
1. Disclosure under the Sexual Harassment of Women at Workplace (POSH) Act, 2013
All companies are now required to include the following information in their Board’s Report:
- Total number of sexual harassment complaints received during the financial year
- Total number of complaints disposed of
- Number of pending complaints exceeding 90 days
This disclosure aims to promote transparency and ensure companies are taking timely action to address sexual harassment complaints in the workplace.
2. Compliance Statement on Maternity Benefit Act, 1961
Companies must now include a formal declaration of compliance with provisions under the Maternity Benefit Act, including:
- Granting of maternity leave
- Provision of nursing breaks
- Protection against dismissal during maternity leave
- Any other related employee entitlements
Implications for Companies
To comply with the amended rules, companies will need to:
- Strengthen HR and compliance frameworks to track and manage complaints and benefits effectively
- Ensure accurate and up-to-date recordkeeping
- Revise Board’s Report formats to include the mandated disclosures
- Train relevant departments (HR, Legal, Secretarial) to manage these updates in a compliant and timely manner
Non-compliance could attract regulatory scrutiny and penalties under the Companies Act, 2013.
Why This Matters
This amendment signals the government’s continuing commitment to fostering gender-sensitive, safe, and inclusive workplaces. It serves not only as a regulatory requirement but also as a corporate responsibility to uphold dignity, safety, and equality in professional environments.
Effective Date: July 14, 2025
Companies are advised to begin preparing now to ensure full compliance by the effective date. Early action can help avoid last-minute hurdles and demonstrate proactive corporate governance.
