Two Coal India independent directors quit a day ahead of AGM

Former Coal Secretaries Alok Perti and C Balakrishnan were the ones who resigned

As the National Democratic Alliance (NDA) government weeds out appointments made by the previous United Progressive Alliance (UPA) regime, two independent directors on the board of Coal India Ltd have resigned, a day ahead of the company’s shareholder meeting.

Former coal secretaries Alok Perti and C Balakrishnan quit ahead of the annual general meeting (AGM) on Wednesday where the company was seeking the ratification of their appointments for a three-year term.

Perti was appointed on the board on October 31, 2013, and Balakrishnan on December 19. By the Companies Act, all appointments of directors to a board have to be ratified by shareholders.

Coal India had moved a resolution for the ratification of their appointments but with the NDA government, according to a source, telling the UPA’s appointees their services were no longer required, the two quit.

"Alok Perti and C Balakrishnan who were appointed as non-official part time Directors on the Board of CIL by Ministry of Coal for a period of three years ... Have tendered their resignation w.E.F. September 08, 2014 and September 09, 2014 respectively," the coal major said in a filing to the BSE.

Shri Prakash had quit the board on September 3 though the company had moved a resolution seeking the confirmation of his appointment for three years.

Prakash was appointed on February 6.

"The government has given an indication to all independent directors appointed during UPA regime to resign. The directors did not want to face humiliation and resigned from the post," a source said.

Perti was the coal secretary from 2011 to 2012.

Balakrishnan held the post from December 1, 2008, to August 31, 2011, before Perti. Coal India was awarded a Maharatna status during his tenure. He was appointed on the public sector undertaking’s board for three years from December 19.

The Narendra Modi government had dismissed  four independent directors of Indian Oil Corporation and nine other appointees of Oil and Natural Gas Corporation, Mangalore Refinery and Petrochemicals Limited and Hindustan Petroleum Corporation Limited are being sought to be removed.