February 2010Anne E Molyneux

Director – CS International

Main Report RecommendationsCG reforms - seen as part of the broader reform programFocus efforts on the profitable companies - navratnas and

miniratnasDeepening CG reforms requires:

Strengthening the state’s ownership role; Professionalising CPSE boards; Enhancing transparency and disclosure.

Implementation of reform requires careful management Future steps

Strategy for CPSE reform Revision of the CG Guidelines Monitor compliance with CG Guidelines Company level reforms Enhance DPE capacities to do all this

Agreed results of discussion

Improving the composition of boards

Improving board selection, appointment and induction processes.

Ensuring systematic board evaluations be mandatory and be introduced for the board, peer review for individual directors and for committee activities.

Ensuring board leadership and development programs are in place, mandatory and taken up at least annually by directors

Agreed results (2)

Ensuring clear distinction of roles and responsibilities of shareholder, board and management

Ensuring clear corporate governance guidelines that CPSE must adhere to.

No ConsensusBoard empowerment

CPSE position in the face of private sector competition and the existence of a ‘level playing field’ for entities operating in similar businesses.

Despite the fact the according to the OECD CG Guidelines for SOEs Part VIC it is stated that ‘Good practice calls for the Chair to be separate from the CEO’.

Actions regarding remuneration of CPSEs were disparate