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There is a need for appointment of another expert committee to review corporate governance norms in line with the worldwide trend in the post-recession period, said a top official SCOPE, the apex body for PSUs.
The public sector enterprises (PSEs) boards have a complex coalition of diverse and heterogeneous partners consisting of functional directors, government-nominee directors and independent directors, SCOPE Director General U D Choubey said while delivering a lecture on the role and accountability of public sector enterprises and governance issues.
Choubey said the public sector enterprises (PSEs) boards have a complex coalition of diverse and heterogeneous partners consisting of functional directors, government-nominee directors and independent directors.
"For effective and efficient functioning of the boards, convergence of these three constituents is imperative and this can be achieved through effective training programmes," he said.
He further added that there is need of complete separation of ownership of board level management in PSEs.
"Current selection process for appointment of chief executives and directors needs to be made simpler and speedier as many board level positions are lying vacant in these enterprises, he added.
Meanwhile, he also pointed out that succession planning, autonomy of PSEs has become key issue and accountability should be evaluated against bench marked position in respect of clear ownership policy and Board policy on governance.
Choubey said that there is trend to restructure board where an independent nomination committee under the sovereign control, away from the administrative ministry, is set up to select independent directors, control and monitoring is being done by a number of developed countries by independent sovereign committees.
