Steel Authority of India (SAIL), the country's largest steel producer, has proposed trimming its board size by almost a fourth to speed up its decision-making process, official sources said.
"SAIL has too large a board. The plan is to bring down the size of the board to 16-18 from the present 24. It has sent a proposal in this regard to its nodal ministry," an official in the Steel Ministry has said.
A large board becomes a hurdle to make swift decisions, especially amid prevalent global economic slowdown, they said adding that the company will save a huge cost hitherto incurred on maintaining a gigantic board.
In addition to curtailing the board size, state-run SAIL has also proposed changes in designation of the company's top executive, which may be christened as Chairman and CEO.
"With Chairman, there is a confusion, whether he is a part-time or a regular one. SAIL has suggested the title of a Chairman and CEO to the government," a source said.
Such changes in the management of a Navratna PSU requires cabinet approval after clearance from different government sections like Department of Personnel and Training, he added.
More From This Section
The amendments should also be in sync with provisions of the Securities & Exchange Board of India.
The steel makers' management structure asks for 12 functional directors and 12 independent directors. After the proposed changes, there could be eight or nine functional and eight or nine independent directors.
As per the market regulators' listing agreement (clause 49), board of a company with an Executive Chairman must have 50 per cent Non-Executive Directors. At present, S K Roongta is the Executive Chairman of SAIL.