Nominations of 3 OGDCL, PPL directors withdrawn

The caretaker federal cabinet has withdrawn nomination of three Directors of OGDCL and PPL, fearing that they may use their positions to potentially influence their election campaigns. Official sources told Business Recorder that the cabinet was informed on July 18, 2018 that the current Boards of Directors of Oil and Gas Development Company Limited and Pakistan Petroleum Limited were constituted on October 9, 2017 and August 31, 2017, respectively with the approval of the Prime Minister. All Directors on these boards were nominated by the Federal Government.
The cabinet was briefed that the following Directors on the Boards of Directors of OGDCL and PPL were contesting General Elections 2018: (i) Rahmat Salam Khattak, PML (N), (NA-34) (Director on the Board of Directors of OGDCL); (ii) Prince Ahmed Omar Ahmedzai, Balochistan Awami Party (NA-266) (Director on the Board of Directors of OGDCL) and (iii) Nadeem Mumtaz Qureshi, Chairman Mustaqbil Pakistan (NA-156) (Director on the Board of Directors of PPL).
Section 165 (3) of Companies Act, 2017 states that "a director nominated under sub-section (1) shall hold office during the pleasure of the nominating body;" and Rule 3A(4)(f)(i) of Public Sector Companies (Corporate Governance) Rules, 2013 adds "provided that a nominated director shall be removed in the event of misconduct on indulging in a competing professional or personal conflict of interests'' situation."
It was apprehended that these directors could use their positions to potentially influence their election campaigns, thus raising serious questions about credibility of the whole election process. Any further continuation of these three Directors on the BODs of their respective companies i.e. OGDCL and PPL would-seriously undermine the neutrality and credibility of the elections. Therefore, it was proposed that the nomination of these Directors be withdrawn from their respective BODs.
The summary was submitted in accordance with the Supreme Court of Pakistan''s Judgment reported as PLD 2016 SC 808 for withdrawal of the nomination of Directors from the Board of Directors of Oil & Gas Development Company (OGDCL) & Pakistan Petroleum Limited (PPL).
After brief discussion, the Cabinet approved withdrawal of nomination of the three Directors from the Boards of OGDCL and PPL.