Corporate Governance non-compliance by PSEs

InGovern analyzed corporate governance standards of top-16 listed non-banking public sector enterprises (PSEs) as at March 31st 2015 and found that not a single PSE is fully compliant will all mandatory corporate governance requirements as per Companies Act and SEBI (LODR) Regulations. Some of the non-compliances of serious nature are:

  • Not a single PSE out of the top-16 complied with the minimum requirements of Independent Directors on their respective Boards
  • As many as 7 PSEs did not have a women director on their Board
  • Composition of Audit Committee of six PSEs was not in accordance with the regulations
  • Composition of Remuneration & Nomination Committee of four PSEs was not in accordance with the regulations

The research note prepared by InGovern can be downloaded from here: Governance Non-compliance by PSEs