Hyderabad: Information technology (IT) services provider Mahindra Satyam said on Tuesday that its two remaining government-nominated directors had stepped down from its board in compliance with an order by the Company Law Board.
Government nominees T.N. Manoharan and Ashok Kacker ceased to be directors on the board of Satyam Computer Services Ltd with effect from Monday, the company said in a communication to the Bombay Stock Exchange.
Satyam Computer was rebranded Mahindra Satyam after its purchase by Tech Mahindra Ltd in April 2009 in an auction overseen by government-appointed directors.
Mahindra Satyam received a letter dated 16 July from the ministry of corporate affairs to this effect in compliance with the Company Law Board directive.
The company had fallen into a crisis after its founder B. Ramalinga Raju confessed to having misstated accounts to the tune of Rs7,136 crore over several years.
The rebranded entity has since recovered under the new management, posting a net profit of Rs1,306.06 crore for the year ended 31 March. Mahindra Satyam and Tech Mahindra said on 21 March that they would combine their operations and secured approvals from their respective shareholders for the merger.
The Company Law Board on 17 July, 2009 permitted the Central government to withdraw four of the six government-appointed directors after it moved an application before it.
“The principal bench of the Company Law Board… said that the remaining directors will continue till such time the Central Government desires to continue them, however, not beyond a period of three years,” a statement from the ministry of corporate affairs said at the time.
Mahindra Satyam spokespeople were unavailable for comment. Its head of brand management, marketing and communication, Indraneel Ganguli, did not return phone calls.
Satyam Computer Services stock was trading up 1.61% at Rs81.85 on a day the benchmark Sensex rose by 0.01% to close 17,105.30 points.