INDIACSR News Network
NEW DELHI: The Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, has amended the provisions regarding the role and functions of non-official Directors appointed to the Boards of Central Public Sector Enterprises (CPSEs).
Through a recent Office Memorandum, the Department has amended the para 8 of the Model Role & Responsibilities for non-official Directors, which deals with separate meeting of non-official Directors. The amended provision now reads as follows:
” 8- Separate Meetings:
(1) The non-official Directors of the company shall hold at least one meeting in a year, without the attendance of Functional and Government Directors and members of management;
(2) All the non-official Directors of the company shall strive to be present at such meeting;
(3) The meeting shall asses the quality, quantity and timeliness of flow of information between the company management and the Board that is necessary for the Board to effectively and reasonably perform their duties.”
This amendment has been brought about taking into account the fact that the Companies Bill, 2012 is yet to be passed by the Parliament; and the Department of Public Enterprises had received a number of references regarding para 8 of the role and functions of non-official Directors.