The Hindu Business Line : Complying with clause 49 will make PSU boards unmanageable: SCOPE

, AS the December 31 deadline for compliance of clause 49 of listing agreement is fast approaching, the public sector giants with a chairman-cum-managing director heading the show are eagerly looking for relief from inducting 50 per cent independent directors.

The PSUs have communicated to the Centre a plea to limit the independent directors to 33 per cent, as required by the company law, as otherwise the board size would reach "unmanageable" levels.

Addressing a press conference here today on behalf of Standing Conference of Public Enterprise (SCOPE), the Indian Oil Corporation Chairman, Mr Sarthak Behuria, said most of the big PSUs were having substantially large sized boards including the Government directors.

"The number will just rise to unmanageable levels if we are to comply with the SEBI directive." Giving specific reference of IOC, he said the company now had 17 directors and the situation was more or less same with most of the large PSUs.

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