Date:09/03/2007 URL: http://www.thehindubusinessline.com/2007/03/09/stories/2007030906380100.htm

Back Cabinet approves board guidelines for Central PSEs

Our Bureau

New Delhi March 8 The Union Cabinet on Thursday gave its approval to the guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs).

As per the guidelines, the board of directors of a company shall have an optimum combination of executive and non-executive directors with not less than 50 per cent comprising non-executive directors.

The number of independent directors would depend on whether the chairman is executive or non-executive. In case of a non-executive chairman, at least one-third of the board should comprise independent directors and in case of an executive chairman, at least half the board should comprise independent directors. The proposed guidelines would be applicable to both listed and unlisted companies.