National Thermal Power Corporation is caught in a piquant situation over the appointment of Ashok Mishra as an independent director on its board as he is also on the board of Reliance Industries against which the company has moved court for effecting a gas supply agreement.
After getting Mishra's consent to join its board along with three other directors earlier this week, NTPC has asked him to give a declaration to assess whether his presence on both the boards could lead to a clash of interest.
"We have sought a declaration from him, and we will forward the same to the government for a decision," highly placed sources in NTPC said.
Mishra, director of IIT-Mumbai, could not be contacted for comments
despite several attempts.
Power secretary R V Shahi said the issue had not yet come to him. Asked whether Mishra would have to choose between one of the two boards, Shahi said, "Either he has to opt for one or he would have to declare his presence on the other and stay away from any discussions when it relates to business with the other entity.
"In any good corporate governance practice, a member in such a situation is always given the option of rescuing himself and board papers on related issues are not sent to the director."
Mishra was appointed as NTPC director last week along with director general of Teri R K Pachauri, former chairman of central electricity authority M I Beg and former IDBI chairman G P Gupta.
