Chennai, Sep 8 (PTI) Three Tamil Nadu government-owned companies had no woman directors on their boards despite statutory requirements, according to a CAG of India report tabled in the state Assembly on Tuesday.
The three companies were Tamil Nadu Generation and Distribution Corporation Limited, Tamil Nadu Electricity Board and Tamil Nadu Arasu Cable TV Corporation Limited, the report said.
The Compliance Audit on State Public Sector Enterprises for the period ended March 2023 found that TANGEDCO, TNEB and TACTV had failed to ensure the mandatory representation of a woman director on their boards.
Section 149(1) of the Companies Act, 2013, read with Rule 3 of the Companies (Appointment and Qualification of Directors) Rules, 2014, mandates that every public company with a paid-up share capital of Rs 100 crore or more, or an annual turnover of at least Rs 300 crore, appoint at least one woman director to its board.
The Comptroller and Auditor General of India noted that the three state-owned companies met the qualifying criteria but had not complied with the requirement.
The audit pointed to wider corporate governance deficiencies among the state’s public sector enterprises.
Of the 82 working SPSEs evaluated, several had not complied with regulatory requirements relating to board composition and oversight.
The CAG found that 16 SPSEs did not have the required number of independent directors, with 15 of them having no independent director on their boards.
It found that 13 state enterprises had failed to hold the mandatory minimum of four board meetings during 2022-23, while six had allowed the interval between consecutive meetings to exceed the prescribed limit of 120 days.
Additionally, 16 state enterprises had failed to establish a statutory vigil mechanism, which provides a channel for employees and directors to report fraud or unethical practices.
Key managerial personnel vacancies remained unfilled for more than six months in seven enterprises, in violation of guidelines issued by the state Bureau of Public Enterprises. PTI JR SSK
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.