New Delhi: Central Public Sector Enterprises have been directed to strictly follow instructions with regard to appointment of working CEOs and directors of listed private companies as non-official directors on PSU boards.
In 2008, the Department of Personnel and Training had notified the decision of Appointment Committee of Cabinet stating that serving CEOs and directors of listed private firms may also be considered for appointment as non-official directors (NoDs) on CPSEs boards.
This is subject to non-availability of suitable former CEOs or professionals below board level from private firms.
"All administrative ministries/departments are requested to ensure strict compliance regarding direction of Appointment Committee of Cabinet ...," an official document said today.
Besides, it said, this should be brought to the notice of all non-official directors appointed on the board of CPSEs under their respective administrative jurisdiction for compliance.
The 2008 notification had said that non-official directors should be appointed on the boards of CPSEs by administrative ministries/departments after ensuring that there would be no conflict of such appointment.
Even a subsequent situation of conflict should be brought to the notice of CPSE and the NoD concerned should immediately resign from the board, it had said.
At present, there are over a dozen PSUs including MMTC which do not have required number of non-official directors on its board.
PTI
