Lok Sabha Question No. 3020 (UNSTARRED), answered on 2023-03-20
Subject: Company Directors
Ministry: CORPORATE AFFAIRS
Asked by: S. Muniswamy

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS LOK SABHA UN-STARRED QUESTION NO. 3020 ANSWERED ON MONDAY, 20 th  MARCH, 2023 PHALGUNA 29, 1944 (SAKA)

## COMPANY DIRECTORS

## QUESTION

3020. SHRI S. MUNISWAMY:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य मंत्री be pleased to state:

- (a) the list of companies listed with the Ministry of Corporate Affairs from the Industrial areas within the  Parliamentary constituency of Kolar in Karnataka along with the details of their Directors;
- (b) whether there is a scope for appointment of independent Directors or nominated Directors with the existing Public Sector Enterprises like BEML, BGML, DRDO at local level units, if so, the details thereof;
- (c)  the  manner  in  which  the  nominated  Directors  are  selected  for these Public Sector Enterprises; and
- (d)  whether  the  appointment/nomination  of  independent  Directors come  under  the  purview  of  Ministry  of  Corporate  Affairs  or  the Department of Public Enterprises and if so, the details thereof?

## ANSWER

Minister of State (Independent Charge) of the Ministry of Statistics and Programme Implementation; Minister of State (Independent Charge) of the  Ministry  of  Planning  and  Minister  of  State  in  the  Ministry  of Corporate Affairs.

(Rao Inderjit Singh)

- (a) As per MCA Portal 931 companies registered under the jurisdiction of Registrar of Companies, Karnataka have their registered office in Kolar  District  and  there  are  2515  Directors  associated  with  these companies. Company wise details are available on the MCA website and can be accessed as under:

MCA Website Parliament Questions & Assurances others (b), (c) & (d): The Companies Act, 2013 (Act) provides for appointment of  independent  directors  [IDs]  or  whole  time  directors  in  certain companies  incorporated  under  the  Act.  The  provisions  of  Section 149(4) of the Companies Act, 2013 read with Rule 4 of the Companies (Appointment and Qualification of Directors) Rules 2014 provide for the  appointment  of  independent  directors  in  companies.  As  per Section 149(4), every listed public company shall have at least onethird of the total number of directors as Independent Directors and the Central Government vide Rule 4 of the Companies (Appointment and Qualification of Directors) Rules 2014, has prescribed that the following  class  or  classes  of  companies  shall  have  at  least  two directors as independent directors:- (i) the public companies having paid-up share capital of ten crore rupees or more; or (ii) the public companies having turnover of one hundred crore rupees or more; or (iii)  the  public  companies  which  have,  in  aggregate,  outstanding loans, debentures and deposits, exceeding fifty crore rupees. The Department of Public Enterprises (DPE) has informed that as per extant DoPT (ACC) guidelines, the proposals for appointment of nonofficial  Directors  on  the  Boards  of  CPSEs  are  initiated  by  the concerned administrative Ministry which submits a panel of names to DPE with the approval of their Minister-in-Charge. DPE places such proposals before the Search Committee and conveys the recommendations of Search Committee to the concerned administrative Ministry which appoints the non-official Directors after completing  due  formalities  in  this  regard  and  after  obtaining  the approval of competent authority.

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