Tuesday, May 30, 2017

Airlines should appoint dirs only after security nod: Govt

New Delhi: Airline companies should appoint directors only after receiving security clearance and they have at least 90 days time to make the appointment under the companies law, according to the Civil Aviation Ministry.
The ministry has come across instances where airline companies have been found violating norms by appointing directors on their boards without getting prior security nod from the government.
While reiterating that airline companies would face punitive action in case of violations with respect to appointment of directors, the ministry said it is felt that there might not be difficulty in complying with the prior security clearance requirement.
Ninety days’ period or time till next board meeting is available with the companies for appointment of directors under the provisions of Companies (Appointment and Qualification of Directors) Rules, the ministry said in an order issued earlier this month.
These rules come under the Companies Act, 2013 — which is implemented by the Corporate Affairs Ministry.
29/05/17 PTI/India.com