In what could be the first indication of a management reshuffle in Videsh Sanchar Nigam Ltd (VSNL) post disinvestment, its director (finance), RSP Sinha, is likely to be appointed as director (finance) of Mahanagar Telephone Nigam Ltd (MTNL). S Sundresan, the current director (finance), MTNL, is about to retire on March 31.
Government sources said Sinha was likely to be chosen for the job because he understood the intricacies of the divestment process and this experience would help MTNL, which was slated for divestment soon. Sinha was VSNL's director during its divestment.
The government last week divested 25 per cent of its stake in VSNL to the Tata group. Though the current management of the company is still in place, indications are that the board of directors including the chairman and managing director, SK Gupta, will offer to resign to enable the Tatas to constitute their management team.
As per the shareholders agreement, both the government and the strategic partner will initially have four directors each on the board with the remaining four being independent members.
However, the strategic partner will have the right to appoint a maximum of six directors on the board in the event of it holding more than 26 per cent of the issued equity.
The government, too, will be allowed to appoint two more directors in the event of holding more than 25 per cent stake.
At least three-fourth of the board will comprise Indian nationals as compared to the earlier proposed 10.
