Board of Directors: An Empirical Study of Navratna Companies

Evaluation of operations of Navratna BODs are at times confidential and very complex, studying, analyzing and evaluating them becomes a very difficult task. The BOD needs to perform efficiently regarding knowledge, time, information, motivation and power. Public Enterprises Section Board (PESB) has to play a strong role and ensure that concerned Ministry is not allowed to get away with any arbitrary decision and decisions should be taken on time to ensure a smooth transition in the company with a proper handing over and taking over. The concept of orientation of non-executive and non-official directors has not received much focus till now in India and all over the world. As against management. Corporate Governance involves dual responsibility fulfilling internal organizational and societal needs. The BOD's role consists of two levels, one relates to setting mission objectives and policy formulation and the second level functions includes monitoring management, and reviewing and controlling their activities form time to time, we found in our analysis that the BODs must not involve itself in day to day functioning of the organization and also that governance does not involve ensuring returns in the short run. This research on nine NAVRATNA companies (like ONGC, NTPC, SAIL IOC, HPCL, BPCL, GAIL, MTNL, BHEL) focuses on need such Board, selection process, functions and weakness o f BOD on the basis o f the secondary materials.