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Role & Responsibilities of non-official Directors on the Boards of CPSE s (Central Public Sector Enterprises)

June 24, 2013 by admin Leave a Comment

Role & Responsibilities of non-official Directors on the Boards of CPSE s (Central Public Sector Enterprises)

F. No. 16(4)/2012-GM
Government of India
Ministry of Heavy Industries & Public Enterprises

Department of Public Enterprises
Public Enterprises Bhawan,
Block No. 14, CGO Complex,
Lodhi Road New Delhi-110003.
Dated the 20th June, 2013

OFFICE MEMORANDUM

Subject: Role & Responsibilities of non-official Directors on the Boards of Central Public Sector Enterprises (CPSEs)

The undersigned is directed to refer to this Department’s O.M. of even number dated 28th December, 2012 circulating therewith copy of Model Role & Responsibilities for non-official Directors appointed on the Boards of CPSEs.

2. This Department has received a number of references regarding para 8 of the role and functions of non-official Directors which deals with separate meeting of non-official Directors. After due examination and taking into account the fact that Companies Bill in the present form is yet to be passed by the Parliament, it has been decided to amend the provisions of para 8 of the role and functions of non-official Directors as under.

 

Existing provision Amended Provision
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
Director 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:
(a) review the performance of Functional and
Government directors and the Board as a
whole;
(b) review the performance of the Chairperson
of the company, taking into account the
views of all the Directors.
(c) assess the quality, quantity and timeliness
of flow of information between the
company management and Board that is
necessary for the Board to effectively and
reasonably perform their duties.
8-SEPARATE MEETINGS
(1) The non-official directors of the
company shall hold at least one
meeting in a years, 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 assess 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.

 

3.  All the administrative Ministries/Department are requested to bring the contents of above O.M. to the notice of CPSEs under their respective administrative control and also non-official Directors appointed on the Boards of such CPSEs for their information and compliance under intimation to this Department.

Sd/-
(Umesh Dongre)
Director

Source:  http://www.dpe.nic.in
[http://www.dpe.nic.in/sites/upload_files/dpe/files/glch02b59_20062013.pdf]

 

Filed Under: CPSE Tagged With: Central Government Employees News, CPSE, CPSE Employees, CPSE Orders, Role & Responsibilities of non-official Directors

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