BHEL, PowerGrid under lens of activist advisory firm

Activist advisory firm Stakeholders Empowerment Services (SES) has once again raised questions on the credibility of two public sector units (PSUs) for not complying with the corporate governance laws. The companies have not proposed the re-election of their Independent Directors. SES, in its latest report on BHEL and PowerGrid, said the companies are not compliant with listing agreement/Department of Public Enterprises guidelines and Companies Act provisions relating to appointment of directors. The Union Government being the promoter of the PSUs is allowed to nominate all directors on board. However, companies should propose for the re-election of the board under Section 255 of the Companies Act. more at: http://www.thehindubusinessline.com/companies/article3897746.ece?ref=wl_opinion