FIVE NOMINEE DIRECTORS TO STAY ON BOARD

MUMBAI: The status of five directors that large shareholders have nominated to the board of IL&FS will remain unchanged though its board has been superseded, two big shareholders said.

“The nominee directors will continue to be a part of the new board and attend board meetings like in the past,” said State Bank of India (SBI) chairman Rajnish Kumar said. “We are currently waiting for the date of the board meeting,” said another senior official with one of the shareholders.

Currently, Life Insurance Corporation of India, SBI, Abu Dhabhi Investment Authority and Central Bank of India have one nominee director each on the board, with Orix Corp. being represented by two directors. Besides the nominee directors, former LIC chairman SB Mathur was appointed as chairman to the board of IL&FS following a board meeting on 15 September. He had replaced Hemant Bhargava, LIC’S managing director who was serving as non-executive chairman since July.

Clarity over the continuation of nominee directors comes a day after the Mumbai bench of the National Company Law Tribunal ordered the reconstitution of the IL&FS board by appointing six government nominee directors. These directors include Uday Kotak, managing director of Kotak Mahindra Bank and GN Bajpai, former Sebi chairman.