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