The Finance Department has pulled up Public Sector Undertakings (PSUs) and corporations for failing to hold timely board meetings which led to delay in budget approval and loss of exchequer.
Taking serious note of the issue, Financial Commissioner, Finance Department, Arun Kumar Mehta advised all the administrative secretaries to direct the corporations and PSUs under their control to hold board meetings on time as per the procedure laid down under section 173 of the Companies Act, 2013.
Mehta, through a circular, conveyed displeasure saying, “It has come to our notice that various PSUs and corporations haven’t held on time board meetings. As a result, completion of accounts and submission of detailed expenditure, utilisation certificates, and red accounts remain pending for considerable period, resulting in delay in budget approval and loss to exchequer.”
“As per Section 173 of the Company Act 2013, every company shall hold its first board meeting within 30 days from the date of incorporation. After the first board meeting, every company will hold a minimum four board meetings in a calendar year,” he said in the circular. “In holding board meetings during the year, there will be more than 120 days gap between two conservative board meetings.”