New Delhi: The Company Law Board (CLB) on Friday allowed the Union government to recall four of its six nominee directors from the board of the fraud-hit Satyam Computer Services Ltd.
The government appointed its nominees on Satyam’s board after the company’s founder B. Ramalinga Raju confessed in January to a Rs7,136 crore accounting fraud.
The firm has since been acquired by Tech Mahindra Ltd and renamed Mahindra Satyam, following which the government sought to recall four of its six nominee directors.
CLB said the remaining two directors C. Achuthan and T.N. Manoharan would continue on Satyam’s board till the government needed them, but not for more than three years.
CLB added in its order that any decision regarding the share purchase agreement can be taken only in the presence of at least one of the two directors. Their presence is also necessary for any decision to be taken in accordance with the conditions imposed as per the bid documents for taking over Satyam.