New Delhi:State-run oil marketer Indian Oil Corp (IOC) Thursday announced the removal of four independent directors, appointed by the previous UPA government, on its board.
In a filing to the stock exchanges, IOC said : “K.Jairaj, Nesar Ahmad, Sunil Krishna and Sayan Chatterjee have ceased to be independent directors on the board of the company on Aug 27, 2014.”
The appointment of all four directors in March for a three-year term was to be ratified by the company shareholders, but IOC did not move a resolution to this effect at its annual general meeting (AGM) in Mumbai Wednesday, leading to their cessation.
Of the eight independent directors on the board, the four who have been removed are Jairaj, former additional chief secretary of Karnataka; Nesar Ahmed, past president of ICSI; Sunil Krishna, former director general of NHRC, and Sayan Chatterjee, former secretary in the central government.
Independent directors of a public sector company are appointed by the Appointments Committee of Cabinet (ACC) consisting of the prime minister and the home minister.
This is possibly the first instance where independent directors of a government undertaking have been removed by non-ratification by the shareholders.