U.S. to shape new GM board; UAW, Canada get seats

WASHINGTON (Reuters) - The Obama administration will shape the new General Motors Corp board of directors and will limit the government's role in decision-making, a senior official said on Sunday.

"The government will not interfere with or exert control over day-to-day company operations and very much will ensure that no government employees will serve on boards," the official said.

GM Chief Executive Officer Fritz Henderson, a board member, will remain at the helm.

Others on the current 12-member board will be asked to stay, but only after administration officials complete discussions with interim Chairman Kent Kresa.

Talks on the shape of the new board have been ongoing for weeks and "substantial additions" should be apparent by the time GM is ready to emerge from court protection, the official said.

"With respect to the kinds of people that are being sought, they are business leaders and CEOs, former CEOs, people from other walks of life with relevant experience who can contribute, regardless of political background, affiliation or nature," the official said.

The Obama administration nominated Robert Kidder, who was named in May to head Chrysler's nine-member board after it emerges from bankruptcy.

Kidder is a private-equity investor and former consultant who once worked for Ford Motor Co. He will succeed Bob Nardelli, who is stepping down as chairman and CEO.

In addition to those candidates spearheaded by the administration for GM, a United Auto Workers retiree health care trust will get one seat in return for concessions and the Canadian government will get a seat in exchange for $9.5 billion in loans.

(Reporting by John Crawley and Caren Bohan; Editing by Ted Kerr)