Concerns Over Corporate Governance in CPSEs
The Comptroller and Auditor General (CAG) has highlighted significant issues related to corporate governance among Central Public Sector Enterprises (CPSEs).
Board Composition and Directors
- Among the 71 listed CPSEs:
- 26 had inadequate board composition.
- 55 lacked the required number of independent directors.
- 20 did not have a woman director on their boards.
Corporate Social Responsibility (CSR) Spending
- Many CPSEs failed to meet their CSR spending targets.
- 14 CPSEs allocated less than 2% of their net profit towards CSR activities.
Financial Performance and Dividends
- A total of 121 CPSEs and corporations declared a dividend of ₹1.11 lakh crore for 2021-22.
- The Government of India received ₹54,381 crore from these dividends.
Reduction in Losses
- The losses incurred by government companies and corporations decreased to ₹31,347 crore in 2021-22.
