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PSUs should start process of appointing independent directors: Panel 10/08/2018 12:00

A parliamentary panel has said that central PSUs should initiate the process of appointment of independent directors.

The panel suggested recommending names directly to the search committee under their respective administrative ministry and the department of public enterprises, a move aimed at expediting the appointments.

As per reports, at present, the process is initiated by the administrative ministry, and involves six layers leading up to the approval of the Appointments Committee of Cabinet.

As per reports, the 'Parliamentary Standing Committee on Industry' in its report on the professionalisation of the boards of central public sector enterprises (CPSEs) said it is "disturbing to find that not even 50 per cent of listed CPSEs are compliant with the provisions of independent directors on the boards of CPSEs".

It said the government should endeavour to make CPSEs independent from the administrative ministry as recommended by the Kotak Committee set up by Sebi on review of corporate governance norms of the country.

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