Coal news and updates

As the NDA government weeds out appointments made by previous UPA regime, two independent directors on board of Coal India Ltd (CIL) have resigned, a day ahead of company's shareholder meeting. 

 

Former coal secretaries Alok Perti and C Balakrishnan quit ahead of CIL's annual general meeting (AGM) on Wednesday where the company was seeking ratification of their appointments for a three-year term. 

 

Perti was appointed on CILBSE 0.04 % board on October 31, 2013 and Balakrishnan on December 19 last year. As per Companies 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 with NDA government communicating 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 parttime directors on the board of CIL by Ministry of Coal for a period of three years ... have tendered their resignation w.e.f. September 8, 2014 and September 9, 2014, respectively," the company said in a filing to the BSE. 

 

Previously, Shri Prakash had quit CIL board on September 3 even though the company had moved a resolution seeking confirmation of his appointment for three years. 

 

Prakash was appointed on Coal India board on February 6 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 December 1, 2008 to August 31, 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 December 19, 2013. 

 

Coal India said "consequently Item No. 5 & 6 of Annual General Meeting notice dated July 9, 2014 for their appointment 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." 

 

 

Source: PTI