Norms for selecting directors amended
Under fire over the moves to appoint politicians who do not fit the conditions as independent directors on the board of public sector companies, the government has amended the eligibility criteria for the job.
By PTI |
NEW DELHI: Under fire over the moves to appoint politicians who do not fit the conditions as independent directors on the board of public sector companies, the government has amended the eligibility criteria for the job.
While resisting the temptation of overhauling the selection criteria fully, the government has made "persons of eminence with proven track record from industry, business or agriculture" eligible for appointment as independent directors on the boards of PSUs.
The move to include lawyers in the list has, however, been dropped after intense consultations.
With agriculturalists and businessmen becoming eligible for the job, the government will be able to accomodate many public men, who did not fulfil the criteria earlier.
The review of the eligibility criteria came after controversy over the moves to appoint politicians who did not fulfil the conditions on the boards of Navratna companies as independent directors.
Public men were never debarred from the job. Infact the guidelines of 1992 had provided that they can be appointed on the boards of PSUs as part-time directors.
However, the circular issued in 2004 on the directions of Prime Minister's Office after the controversy over the appointment of a political functionary on the board of MTNL added some additional conditions.
The guidelines issued in March 2004 has said senior bureaucrats - having served not less than 10 years as Joint Secretary - or university professors, technocrats, institute heads and corporate leaders, could be appointed as independent directors of PSU Boards. Politicians who fulfilled that conditions were also eligible.
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