Govt appoints two directors to Maytas Infra board: PC Gupta
March, 06th 2009
The Company Law Board ruled against the governments demands to supersede the Maytas Infra board but has directed the appointment of four government representative on the board.
PC Gupta, Minister, Corporate Affairs in a press conference, today said the government had appointed Shree OP Vaish, a leading corporate lawyer, and Shree Ved Jain, President, ICAI as directors to the board of Maytas Infra. He added that two other directors including a Chairman will be appointed shortly.
Here is a verbatim transcript of PC Guta's Press Conference. Also watch the accompanying video.
The CLB as an interim arrangement allowed the government inter alia to appoint four directors including the Chairman on the Board of Maytas Infra Limited along with the condition that the quorum for the board meeting will require the presence of at least two of the nominee directors and any decision will require their affirmative vote. The CLB has allowed the government to appoint one nominee director on board of Maytas Properties Limited who shall be part of the quorum of the board meeting and board decision would require his affirmative vote.
After considering all aspects, the government had agreed to an arrangement that allowed government control in the conduct of affairs of the two companies without compromising with the imparity of revamping the management of the two companies.
In the meantime, the government would take necessary steps to enable the said companies to function in accordance with sound corporate governance, principles and in the interest of all stakeholders. On receipt of the CLB orders, we appointed two directors on the board of Maytas Infra Limited. These are Shree OP Vaish leading corporate lawyer and Shree Ved Jain President of ICAI. Two other directors including a Chairman will be appointed shortly.
In Maytas Properties, Shree Ved Jain has been appointed as a Director on the behalf of the government.