Major PSU's violating clause 49 on independent directors : CAG

New Delhi, Apr 24 (UNI) The Comptroller and Auditor General (CAG) in its report on corporate governance by public sector undertakings said as on June 30, 2007, around 30 listed PSUs did not have required number of independent directors as per clause 49 of the Listing Agreement of Companies Act, ''A limited review of the 30 major PSU's like GAIL, Indian Oil Corporation Ltd, NTPC, ONGC, Bharat Petroleum Ltd, SAIL, and MTNL revealed that the Board was not comprised of the required number of independent directors,'' Director General, Commercial Audit (CAG) A K Awasthi told reporters here.

He said the composition of Audit Committee of 18 listed government companies was not as per clause 49 of the listing agreement with SEBI.

A review of the compliance with the Department of Public Enterprises (DPE) guidelines relating to non-official directors on the Board and constitution of Audit Committee as per section 292A of the Companies Act,1956 as on 30 June 2007 was also done.

The survey revealed the Board of 64 unlisted government companies was not comprised of required number of non-official directors on their Board as per DPE's guidelines and no Audit Committee was formed by five unlisted government companies as required by Section 292A of the Companies Act,1956, Mr Awasthi said.

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