Section 30 Electricity Act 2023

Section 30 of the Electricity Act 2023 is about Composition and appointment of the Board of the ISO. It is under Part IV (Incorporation and Licensing of ISO) of the Act.

(1) The ISO shall be subject to the National Code of Corporate Governance.

(2) The Commission shall cause the Incorporation document of the ISO to provide for the composition of the Board as follows —

(a) a non-executive Chairman:
(b) the Managing Director of the ISO who shall possess at least 10 years cognate professional or management experience in an electricity generation, transmission, system operation or distribution company;

(c) four Executive Directors who shall possess at least 10-year cognate professional or management experience in an electricity generation, transmission, system operation or distribution company;
(d) four Non-Executive Directors who shall possess at least 10 years cognate professional or management experience in an electricity generation, transmission, system operation or distribution company; and
(e) a representative of the Ministry responsible for power who shall not be below the rank of director.

(3) The Commission shall have the responsibility to ensure that nominees for appointment to the Board of the ISO under subsection (2) meet the Commission’s fit and proper requirements for the composition of such Boards in the NESI and for this purpose ascertain and issue its reservations or otherwise as to the suitability or otherwise of such nominees for appointment.

(4) Notwithstanding the provisions of the Companies and Allied Matters Act or any other enactment, the power of the shareholders to appoint or remove directors, shall be subject to subsection (5).

(5) For the purpose of maxing appointments 😮 the Board of Directors of the ISO, the subscribers to the constitutional document of the ISO shall constitute an independent committee (“the Board Nomination Committee”) of five persons with proven qualifications and tested industry experience one of which shall include a representative of the Ministry responsible for power who shall not be below the rank of director, to identify and recommend highly qualified candidates for such positions in a competitive and transparent manner.