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Role & Resposibilities of Part-time Chairman
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GOVERNMENT OF ASSAM
DEPARTMENT OF PUBLIC ENTERPRISES
ASSAM SECRETARIAT, DISPUR, GAUHATI
No. PE 21/88/18 Dated Dispur the 23rd
September 1988
OFFICE MEMORANDUM
Sub: ROLE &
RESPONSIBILITIES OF PART-TIME CHAIMAN OF STATE
PUBLIC
ENTERPRISES
Attention of State Govt. has been drawn towards the lack of
guidelines regarding the role & responsibilities of part-time
Chairman of State Public Enterprises. Since t is necessary that the
part-time Chairman and the whole time chief executive work in a
mutually supportive manner in the best interest of the public
enterprise, after careful consideration the State Govt. has decided
to issue the following guidelines:
The part-time Chairman should guide the Board of Directors
in the discharge of the Role entrusted top them in respect of
formulating corporate policy and the corporate plan and their
implementation & evaluation with a view to improving the
enterprise's performance.
The part-time Chairman can call for information, but this
should be appropriately done through the Managing Director and
directly from the officers. A healthy relationship should develop
between the part-time chairman & the Managing Director. It will
be improper for the Managing Director to withhold information from
the part-time chairman.
The part-time Chairman cannot issue directives, as the
management of public enterprises is vested under the Companies Act
in its Board of Directors.
Sd/-
S.D.Phene
Chief
Secretary to the Govt. of Assam
Memo No. PE 21/88/ 18-A Dated Dispur the 23rd Septemer,
1988
Copy to:
All administrative departments
Chief Executives of all State Public Enterprises
Chairman of all State Public Enterprises
By order
etc.
Sd/-
Secretary , Public Enterprises
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GOVERNMENT OF ASSAM
DEPARTMENT OF PUBLIC ENTERPRISES
ASSAM SECRETARIAT, DISPUR, GAUHATI
No. PE 21/88 Dated Dispur the 18th May
1989
OFFICE MEMORANDUM
Sub: ROLE &
RESPONSIBILITIES OF CHIEF EXECUTIVE OFFICERS OF
PUBLIC ENTERPRISES
Attention of Govt. has been drawn to instances of financial &
administrative irregularities committed by Chief Executives and other
functionaries of public enterprises on the pretext that such
irregularities have been committed at the instance of the chairman /
member of Board of directors, managing Committee etc. As has been
clearly spelt out in this department OM no. PE 21/88/18 dated 23rd
Sept,1988 under the Companies Act / Assam Co-operative Societies Act,
the Chief Executive is responsible for observance of all financial
and administrative procedure in conducing the transactions of pubic
enterprises . It should be noted that no Board or managing committee
charged with the running of public enterprises can take any decision
or action, which is itself irregular and violative of existing law,
rules of Memorandum & Articles of Association. It is personal
responsibility of the Chief Executive of public undertaking to ensure
observance of rules & procedures in the transaction of business f
the undertaking. The mere fact that certain irregular action was
taken at the instance of the Chairman or a member of Board of
Director will no be accepted as an excuse for irregularity committed
by the undertaking.
Failure of the Chief Executive or any other functionary of any
undertaking to observe ordinary business procedure in transaction of
business resulting in financial loss will be considered serious
dereliction of duty and will be dealt with as such.
Sd/-
A.P.Sarwan
Chief Secretary to the Govt. of Assam
Memo No. PE 21/88 -A Dated Dispur the 18th May,
1989
Copy to:
Managing Director / Chief Executive Officers of all State
public enterprises
Chairman of all State Public Enterprises
Commissioner / Secretary of all administrative departments
By order
etc.
Sd/-
Secretary to the Govt. of Assam
Department
of Public Enterprises
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GOVERNMENT OF ASSAM
DEPARTMENT OF PUBLIC ENTERPRISES
ASSAM SECRETARIAT, DISPUR, GAUHATI - 6
No. PE 5/91/14 Dated Dispur the 12th
April 1991
OFFICE MEMORANDUM
Sub:
RESPONSIBILITIES OF BOARD OF DIRECTORS
The Board of directors of State level public enterprises (SLPEs)
are required to look into policy issues as also into the major
operational matters of the enterprises. Some of the major areas which
need to be given specific attention by the Board of such enterprises
are indicated below:
Corporate planning:
It is necessary that SLPE give serious thought to corporate
medium / long term planning keeping in view the changing
environment. Such corporate plans should bring-out, inter-alia,
the likely physical achievements in the next 3/5 years, the
sources of funding and cash-flow analysis, the likely profit &
loss scenario, the need and feasibility of taking-up new schemes
/ diversification measures, etc. In short, an attempt should be
made to bring-out in such a plan the strength, weakness,
opportunities & threats to each organization in medium &
long term.
Organization:
It is necessary to have a total look into the staffing pattern of
SLPEs with reference to the present & likely future job
requirements as also the career progression possibilities that
should be built into the organizational structure. Besides, the
appropriateness of otherwise of the existing system of delegation
of powers needs also to be reviewed. Similarly, the possibility
of introducing a system of appraisal of the performance of
particularly key individual with reference to the concept of
MANAGEMNT BY OBJECTIVES (MBO) could be examined. Particular
attention will also have to be given o the capabilities of the
financial management in the organization and the need for
strengthening / augmentation of the existing arrangement. For all
these, the Board might like to get an overall in-depth analysis
of the organizational structure made by an outside consultant for
taking a final view about the reforms that should be introduced.
Physical &
financial targets: Each SLPE prepares its physical &
financial targets at the beginning of each financial year. Such
targets will have to be framed, among other things, for
production, sales turnover, number of beneficiaries under
deferent schemes ( for promotional organizations), etc. The
Board is required to review the annual targets with reference to
past performance as also future capabilities. An attempt will
have to made to anticipate to the extent possible the constraint
& difficulties in achieving these targets and possible
remedial action be discussed in the Board.
Inventory Management:
The Board could prescribe broad targets of inventory levels
after taking account the financial capability of the
organization, the fast moving items, and after conducting some
sort of ABC analysis. The actual inventory levels could therefore
be reviewed periodically.
Schemes &
projects: The Board may at the beginning of each year,
take stock of the ongoing schemes as also the projects that are
expected to be taken-up in the current financial year. The
administrative and other arrangements as also the sources of
funding, the schedule of completion etc. of such projects and
schemes can be laid-down by the Board after discussion at the
beginning of each year so that the same can be reviewed
periodically.
Annual statement of
accounts: It has been found that there are very large
backlogs in presentation of annual statement of accounts before
the annual general meeting after completion of audit formalities.
It is necessary that the Board makes an attempt to lay down
schedules for finalization of accounts for the past years and
this matter needs also to be reviewed periodically. For this
purpose, it is necessary that the internal audit machinery of the
SLPE is activised as this also help completion of current
accounts expeditiously.
Periodical review:
The Board of Directors may work-out their own formats for a
quarterly review of subjects indicated above. Particular
attention has to be given in such quarterly review to physical &
financial targets, cash-flow position, and funding sources,
inventory levels and monitoring of the position relating to the
ongoing & future projects.
It is requested that the Chief Executive of each SLPE take
steps for placing before their respective Boards these broad
guidelines as also the position relating to the subjects
indicated above.
Sd/- Prabir Sengupta
Commissioner & Secretary to the Govt. of Assam
Department of Public Enterprises
Memo No. PE 5/91/14-A Dated Dispur the 12th August,
1991
Copy to:
Concerned administrative departments of Assam Sectt, Dispur
Chairman of all State Public Enterprises
Managing Director / Chief Executive Officers of all State
public enterprises
By order etc.
Sd/- Prabir Sengupta
Commissioner & Secretary to the Govt. of Assam
Department of Public Enterprises
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