MMTC Ltd issues clarification against non-constitution of Sub-Committee of Board

New Delhi, 31 August: MMTC Ltd., under the Government of India, has issued a mandatory clarification against the non-constitution of mandatory subcommittees of the board. In an exchange filing, it has been informed that there is no independent director on the board of MMTC Limited, and accordingly, in the absence of independent directors, the company is unable to constitute and reconstitute the mandatory subcommittees of the board.

In order to constitute the mandatory subcommittees of the board, the appointment of independent directors is a mandatory requirement under the provisions of SEBI (LODR) Regulations, 2015, and is essential for the constitution of the prescribed board committees.

In the absence of independent directors on the board, the company is presently unable to constitute such committees in compliance with the applicable regulatory requirements.

Further, it may be mentioned that MMTC Ltd. being a Govt. of India enterprise under the aegis of the Ministry of Commerce & Industry, all the directors (including independent directors) are appointed by the ministry; therefore, MMTC has no control over the appointment of directors on the board of the company.

The company stated that it has informed the DoC regularly regarding the appointment of the requisite number of directors for constitution and functioning under the prescribed regulations of SEBI (LODR).