Recently, Shipping Corporation of India (SCI) has been granted permission to a plan to split the core and non-core assets by Ministry of Corporate Affairs (MCA). This will pave the way for the government to divest its 63 percent stake in the company.
Divestment of 63% Govt Stake in Shipping Corporation of India
More than 40 objections were filed by vendors and stakeholders ahead of its privatisation by the Shipping Corporation of India Officers Association (SCIOA) and the Shipping Corporation of India Staff Union (SCISU). This was done in the light of protecting the interests of employees post privatisation.
Last year on December 29, Ministry of Corporate Affairs had called for a final meeting on demerger.
The Ministry of Corporate Affairs directed SCI during a final hearing to file its response on how it proposes to address the concerns. But this direction has thrown the state-run company into a tizzy as to who would sign the affidavit.
The problem arose due to the fact that the delegation of powers in state-run firms such as SCI does not mention instances such as filing of affidavits and the officer signing it. Hence, the company’s board or its chairperson will have to authorise an officer to file the affidavit under his signature.
The Mumbai-headquartered SCI is a government corporation under the ownership of the Ministry of Shipping. SCI is tasked to operate and manage vessels servicing.
More About Shipping Corporation & Ministry of Corporate Affairs
Owned by Ministry of Shipping, Government of India, with its headquarters in Mumbai, Shipping Corporation of India is a government corporation that operates and manages vessels servicing both national and international lines.
Whereas, The Ministry of Corporate Affairs is an Indian government ministry primarily concerned with administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008, and the Insolvency and Bankruptcy Code, 2016.
It regulates the Indian enterprises in the industrial and services sector. It is run mostly by civil servants of the ICLS cadre. The highest post, Director General of Corporate Affairs (DGCoA), is fixed at Apex Scale for the ICLS. The current minister is Nirmala Sitaraman.
