corporate governance public sector enterprises dr. b. yerram raju asci, hyderabad
TRANSCRIPT
CORPORATE GOVERNANCEPUBLIC SECTOR
ENTERPRISES
Dr. B. Yerram Raju
ASCI, HYDERABAD
RESPONSIBILITIES OF BODGOI GUIDELINES
• RESPONSIBLE FOR MANAGEMENT OF PSE• PRODUCTION & MATERIALS MANAGEMENT
• FINANCIAL MANGEMENT
• CONSTRUCTION MANAGEMENT
• GENERAL MANAGEMENT
CIRCULARS FROM BPE,DOPE, AND VARIOUS MINISTRIES(1972,82,88,95,96)
COMPOSITION OF THE BOARD
• FULL TIME CMD
• 2 FUNCTIONAL DIRECTORS(ONE FOR FINANCE)
• 1/3 OF TOTAL STRENGTH IN MULTI-UNIT & MULTI-REGIONAL PSES ARE NON-OFFICIAL PART-TIME DIRO
• GOVt REPS ON BOARDS
• CHOICE OF NOMINEE DIRO WITH MINISTRY
NOMENCLATURE• FUNCTIONAL DIRO: RESPONSIBLE
FOR DAY-TO-DAY FUNCTIONING
• GOVT DIRO: OFFICERS DEALING WITH THE PSE IN THE MINISTRY(NOT MORE THAN TWO)
• NON-OFFICIAL(NOMINEE DIRO)
• PERSONNEL & FINANCE TO BE PART OF BOARD
• APPOINTMENT OF SPECIAL/EXECUTIVE DIRO WRONG
TENURE OFNOMINEE DIRECTORS:
NOT MORE THAN 3 YEARS
ROTATIONAL RETIREMENT
(SECTION 255-257 OF THE Companies Act)
AVOID IN-BREEDING AND
APPOINT SCIENTISTS, TECHNOLOGISTS & SPECIALISTS
SUPERANNUATION AS PER GOVT DIRECTIVES
PERKS & REMUNERATION OF PART-TIME CHAIRPERSONS DECIDED BY GOVT.
CORE OF PSEs
• PUBLIC OWNERSHIP
• PUBLIC PURPOSE AND
• PUBLIC CONTROL
PUBLIC CONTROL
• LEGISLATIVE CONTROL
• MINISTERIAL CONTROL
• AUDIT CONTROL
LEGISLATIVE CONTROL
• Instruments:
Questions; Debates & Committees
• Committees:
(a) Public Accounts Committee
(b) Estimates Committee; and
© Committee on Public Undertakings
MINISTERIAL CONTROL
• GENERAL POLICY DIRECTIVES
-PRICE FIXATION
-COMMISSIONING NEW PROJECTS
-INTER-CORPORATE INVESTMENTS
• APPOINTMENT OF BOARD of DIRECTORS
AUDIT CONTROL
• COMPTROLLER&AUDITORGENERAL SECTION 619(3)(A) OF THE Companies Act, 1956
• COMPREHENSIVE REVIEW OF A FEW SELECTEDENTERPRISES EVERY YEAR
• STATUTORY AUDITORS
Institutional Environment
Governance
Individual
StrategicShift Parameter
BehavioralAttributes
EndogenousPreferences
A layer schema:adapted from Oliver E. Williamson,THE MECHANISMS OF GOVERNANCE