NEW DELHI:
The Union Government on Thursday approved the guidelines on corporate governance for Central public sector enterprises, requiring all companies to have independent directors on their board.
"The Union Cabinet approved the guidelines on corporate governance for public sector companies... The board of directors must have an optimum combination of executive and non-executive members,'' Information and Broadcasting Minister P R Dasmunsi told reporters.
The board would have not less than 50 per cent of members as independent directors, he said after the Cabinet meeting chaired by Prime Minister Manmohan Singh. The exact number of independent directors on a company's board would depend on whether the chairman is executive or non-executive, he said. — PTI
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