Boardroom gaps: PSUs' governance under lens

Stock exchanges' levy of penalties, ranging from ₹3 lakh to ₹12 lakh, on public-sector undertakings (PSUs) for lapses in board composition for the 2024-25 October-December quarter has brought forth issues of governance.

- KHUSHBOO TIWARI

Last month, 16 PSUs requested bourses to waive these penalties, arguing that these lapses were neither due to negligence nor within their control, as the appointment of directors is managed by the government.

The violations include failing to meet the minimum requirements for independent directors and women directors on their boards. Additional alleged shortcomings include issues with the quorum of board meetings and the composition of key committees, such as the audit committee, nomination and remuneration committee, and stakeholders relationship committee.

While such lapses are not new, the latest round of penalties has once again put the limelight on corporate governance standards at listed PSUs.