The central government is looking to strengthen the boards of public sector. The boards are strengthened by specifying terms of office and conditions of service for all time directors and also seeking disclosures from all directors about interests in other companies. Through the Banking Laws Amendment Bill, the government is likely to introduce conditions for the disqualification of whole time directors which are not specified in the current legislation. The changes that are about to make are tenure of chairman of public sector banks and their conditions.
The government is making changes that shall replace the existing clauses in the Act. But these changes will not affect SBI because SBI is of a different statute. The board of a government owned bank is likely to be empowered to constitute committees as it deems fit or on the advice of the Reserve Bank Of India.
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