 "Erasing UPA legacy: Two Coal India independent directors resign ahead of AGM")
New Delhi - As the NDA government weeds out appointments made by previous UPA regime, two independent directors on board of Coal India Ltd resigned yesterday, ahead of the company’s annual general meeting today.
Former Coal Secretaries Alok Perti and C Balakrishnan quit ahead of Coal India’s AGM, where the company was seeking ratification of their appointments for a three-year term.
Perti was appointed on Coal India board on 31 October 2013, and Balakrishnan on 19 December last year. As perCompanies Act, all appointments of directors to a company board have to be ratified by its shareholders.
Coal India had moved a resolution for seeking ratification of their appointment and but with NDA governmentcommunicating to the UPA-appointees that their services are no longer required, the two quit.
“Alok Perti and C Balakrishnan who were appointed as non-official part time Directors on the Board of CIL byMinistry of Coal for a period of three years … have tendered their resignation w.e.f. September 08, 2014 and September 09, 2014 respectively,” the coal major said in a filing to the BSE.
Previously, Shri Prakash had quit Coal India board on 3 September even though the company had moved a resolutionseeking confirmation of his appointment for three years.
Prakash was appointed on Coal India board on 6 February this year.
“The government has given an indication to all independent directors appointed during UPA regime to resign. The directors did not want to face humiliation and resigned from the post,” a source said.
Perti, who held the post of Coal Secretary from 2011 to 2012 was appointed on the PSU board on October 31, 2013 for a period of three years.
Balakrishnan held the post of Secretary, Coal from 1 December 2008 to 31 August 2011 prior to Perti and CIL was awarded the coveted ‘Maharatna’ status during his tenure. He was appointed on the PSU board for three years with effect from 19 December 2013.
Coal India said “consequently Item No. 5 & 6 of Annual General Meeting notice dated July 09, 2014 for theirappointment for the balance period as Independent Directors not liable for retirement under rotation will not be taken up for consideration in the AGM to be held on September 10, 2014.”
Earlier the Narendra-Modi government had sacked four independent directors of IOC and nine other such appointees on board of ONGC, MRPL and HPCL are being sought to be removed.
PTI