Specifically, as to whether the governance environment

Specifically, family firms are considered to be unique in comparison to non-family firms in terms of agency problems as manifested in ownership patterns, governance structure, management, motivation, objectives and social value systems (Zahra et al., 2004; Pieper, 2010). Given this, a question of interest is whether women directors matter in these firms in ways that are different from that in widely held firms. Encompassing this question is the larger question of general interest as to whether the governance environment of a firm matters in determining the relationship between gender diversity and firms functioning. There have been studies and papers presented on this but still there is lot of lacuna and ambiguity in the literature with regard to family boards of developing nations due to their culture and traditional governance practices, especially in countries like India and China.
Interestingly, India in order to be a service industry hub of the world it is striving hard to meet the global standards by transplanting and implementing best industrial/governance policies and procedure. Inspired from developed nations, India has introduced a mandatory provision in Companies Act 2013, section 149 (1) where the board shall have at least one women director, which became effective from 1 April 2014. Further to this the Securities Exchange board has enforced in regulation 17 of (LODR) regulations that the composition of board of listed entity should have executive and on executive directors with at least one women director.
India has joined the wagon of forced gender diversity nations, but the question is how the law is going to work with the patriarchy society. As reported “different strategy, skills and governance mechanisms are required for family organisations, (Anderson and Reeb,2004; DeMott, 2008). The Irony here is Indian government is encouraging Gender diversity and on another hand it has rejected ‘women reservation bill’2008. Does this imply that the law is just a lip service act to attract foreign investments in order to comply with the internationals standards? The research will focus on this area along with how it will work with the internal management of traditionally managed firms. The purpose of this research is to find the direct effect of the law on the family based organization based on the above issues by using data from listed and few unlisted companies. Further to it the type of business sectors which have started implementing the law and the ones which are not. The cause and effect perceptions of the law to the stake holders and the micro/macro-economic factors associated with the company.
By going through different academic writings to best of my knowledge no empirical research has been done on this topic. The objective is to fill in the lacuna and make contributions by understanding the relationship between the law, corporates and its stakeholders. This study may contribute to the debate on gender diversity on corporate boards and might help to improve the present situation in the developing countries corporate boards.