ROME (Reuters) - The government is encountering opposition to its proposed candidates for Enel's board of directors. A shareholder vote will be held today.

The issue has turned into a broader test of Rome's power over listed state-owned companies, and the outcome of the vote appears uncertain.

WHAT ARE THE GOVERNMENT'S PROPOSALS?

The Treasury, which holds a 23.6 percent stake in Enel, has proposed Flavio Cattaneo as CEO to replace Francesco Starace, who has led Enel since 2014.

Cattaneo is currently vice chairman of Italo and has previously been CEO of Telecom Italia and Terna.

The Treasury also named a new chairman for Enel, choosing Paolo Scaroni, former CEO of Enel and Eni and current president of AC Milan.

WHAT ALTERNATIVES HAVE BEEN PROPOSED?

London-based hedge fund Covalis, which controls about 1 percent of Enel, presented an alternative list of candidates for the board of directors, including banker Marco Mazzucchelli as chairman.

Covalis said the system that led to the government's nominations "undermines investor confidence, erodes value and is not in line with international standards of best practice in shareholder democracy."

The hedge fund has not proposed a CEO candidate, but said in a letter to Enel investors that it will reopen the process of appointing a CEO if its list gains sufficient support and Mazzucchelli is elected chairman.

Mondrian Investment Partners, which holds 1.7 percent of Enel's shares, supported Covalis' slate of candidates for the BoD.

HOW WERE THESE PROPOSALS ACCEPTED?

Proxy advisor Iss recommended that shareholders support Treasury's proposal of Scaroni as chairman and expressed support for Cattaneo as CEO.

However, Iss expressed concern about the "lack of relevant skills and experience" of four other candidates for the BoD proposed by Treasury and instead endorsed the candidates put forward by Assogestioni, which represents institutional investors.

Glass Lewis advised shareholders to support Covalis' candidate Mazzucchelli for chairman, as he was considered better suited to counterbalance the CEO's presence on the board.

Frontis Governance recommended backing the candidates promoted by Covalis and rejecting the names proposed by Treasury, in a report prepared for Swiss Ethos, a group of pension funds and other investors.

Norwegian sovereign wealth fund Norges said it will vote for Mazzucchelli as chairman. The fund also said it will support other board candidates proposed by Assogestioni.

Covalis criticized Assogestioni for not supporting calls for an independent chairman for the utility and called for a new organization to promote corporate governance reform.

WHAT IS STARACE'S POSITION?

Outgoing CEO Starace let it be known that he will stay on for no more than a month to facilitate the transition to new management, reiterating that he is not available to run again for another three-year term.

The current BoD has indicated that it will only comment on the situation following the shareholder vote.

NOMINATIONS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER

Shareholders will vote to choose the chairman of the board during the meeting, while the next CEO will be appointed by the new BoD at a later meeting.

(Translated by Chiara Bontacchio, editing Stefano Bernabei)