CCI approves Tata Power Company Limited’s acquisition of 51 percent of NESCO Utility’s equity share capital from Grid Corporation of Odisha Limited
On March 18, 2021, the Competition Commission of India approves The Tata Power Company Limited’s acquisition of 51 percent of the equity share capital of North Eastern Electricity Supply Company of Odisha from Grid Corporation of Odisha Limited under Section 31(1) of the Competition Act, 2002.
The proposed merger relates to the TPCL’s acquisition of 51 percent of NESCO Utility’s equity share capital from GRIDCO as part of the Odisha Electricity Regulatory Commission’s competitive bidding procedure under Section 20 of the Electricity Act, 2003.
TPCL is a public company that specialises in power generation, transmission, and distribution. It was established on September 18, 1919.
NESCO Utility, established on November 19, 1997, is a power distribution company operating in five Odisha districts.
The MCA restricts the amount of remuneration that can be charged to independent directors
Under Schedule V of the Companies Act 2013, the Ministry of Corporate Affairs has imposed certain limits on the remuneration payable to independent directors.
A business with negative capital or less than Rs 5 crore will pay non-executive directors a yearly remuneration of Rs 12 lakh under the amended schedule. Remuneration for companies with capital exceeding Rs 250 crore will go up to Rs 24 lakh in addition to 0.01 percent of the effective capital exceeding Rs 250 crores.
The MCA amended schedule V of the Act to set limits on such remuneration based on the firm’s effective resources, which could be raised only if shareholders approved a special resolution.
Also, under Section 3 the word “managerial person” has been replaced with the word “or other directors”.