CPSEs told to submit governance report card

NEW DELHI: Most public sector companies are yet to submit a progress report on implementation of corporate governance as per guidelines issued by the government in June 2007.

The Department of Public Enterprises (DPE), which issued the guidelines, has asked all public sector enterprises to submit progress reports on compliance with corporate governance guidelines immediately.

���DPE had issued corporate governance guidelines on an experimental basis in June 2007 . Suitable improvements were to be made thereafter, in line with the experience gained. But as the concerning central public sector enterprises (CPSEs) have not yet submitted the progress report on implementation, we have not been able to review it,��� an official in the DPE, who did not wish to be named, told ET. The reviewed guidelines were due on June 2008.

While listed CPSE���s have to follow the guidelines issued by Sebi on corporate governance, they are also expected to follow the provisions in the guidelines issued by DPE which do not exist in the Sebi guidelines or contradict them.

Non-listed CPSEs are expected to follow the guidelines on corporate governance issued by DPE and submit mid-year progress reports on the implementation of the guidelines.

While releasing the guidelines, the government had underlined that while the guidelines were voluntary in nature, they should be followed by all CPSEs as they were designed to protect the interest of shareholders and relevant stakeholders. The compliance with these guidelines requires to be reflected in the director���s report, the annual report and the chairman���s speech in the annual general meeting. But many CPSE���s are yet to implement the guidelines.

The Department of Public Enterprises is the nodal department for laying down policies and guidelines concerning CPSEs. The guidelines were evolved through a consultation process in which the stakeholders had participated. It keeps in view the provisions in the relevant laws, rules and instructions.