Mahindra Satyam | Government moves CLB to remove four directors

Mahindra Satyam | Government moves CLB to remove four directors
Comment E-mail Print Share
First Published: Fri, Jul 03 2009. 12 56 AM IST
Updated: Fri, Jul 03 2009. 12 56 AM IST
New Delhi: Ending speculation, the government has moved the Company Law Board (CLB) for the removal of four nominee-directors from the board of Mahindra Satyam.
The government wants two of its directors to remain on the board.
The matter came up for mention before the CLB and chairman S. Balasubramanian reserved his ruling on the matter.
Although the petition did not mention specific names, people close to the development say that Kiran Karnik, former chief of the National Association of Software and Service Companies (Nasscom), Housing Development and Finance Corp. Ltd chairman Deepak Parekh, former Securities and Exchange Board of India member C. Achutan and Confederation of Indian Industry chief mentor Tarun Das are almost certain to exit the board of Mahindra Satyam.
Life Insurance Corp. of India’s executive director S.B. Mainak and T.M Manoharan, a former chairman of the Institute of Chartered Accountants of India, are likely to continue on the company’s board, the people said.
The government named the six to the board of Satyam Computer Services Ltd after founder-chairman B. Ramalinga Raju in January confessed to a Rs,7,136 crore accounting fraud, plunging the software services firm into India’s biggest corporate governance scandal.
In April, Tech Mahindra acquired 31% in Satyam for Rs1,756 crore.
A final order from the CLB is likely by Friday.
cnbctv18@livemint.com
Comment E-mail Print Share
First Published: Fri, Jul 03 2009. 12 56 AM IST