Coal India Limited and subsidiaries running without independent directors
Maharatana PSU, Coal India Limited (CIL) and its subsidiaries including the Nagpur-based Western Coalfields Limited (WCL), do not have independent directors on their board since six months at least. In WCL, the posts have not been filled up since a year. Having independent directors is a part corporate governance practices to ensure transparency in management of a company.
In a PSU, the board consists of functional directors, who come from the ranks, government nominees and independent directors who are professionals drawn from outside. The appointments are made by the ministry concerned for a tenure of two years. However in recent times, as the independent directors retired in CIL and its subsidiaries, the posts were not filled up. Sources in the top management said government was taking its own time on the issue. Though delay is normal for such appointments, the gap this time has been unprecedented.