As many as 25 PSUs, including blue-chip companies like Indian Oil, SAIL, ONGC and BHEL, are not compliant with market regulator Securities and Exchange Board of India's norms on the representation of independent directors on their boards, Parliament was informed on Tuesday."(For the quarter ended December 31, 2010), 25 listed CPSEs have not yet complied with Clause 49 (1) (A) of Equity Listing Agreement, which specifies the composition of the board for listed companies," Minister of State for Heavy Industries and Public Enterprises A Sai Prathap said.
Under Clause 49, independent directors are required to have at least 50 per cent representation on the board of directors of listed entities, including listed Central Public Sector Enterprises, in case the chairman is an executive member, or at least one-third in case the chairman is non-executive.
The 'main reason for the delay in appointment of the requisite number of independent directors on the board of these CPSEs is the non-initiative of the proposals for appointment of independent directors by the concerned administrative ministries/departments
in time', Prathap said.
The other CPSEs that have not yet complied with the norm includes Engineers India Ltd, IRCON International Ltd, MMTC Ltd, NALCO, BPCL, HPCL, Neyveli Lignite Corporation Ltd and Rural Electrification Corporation Ltd.
