Govt names nominee directors for Maytas

Govt names nominee directors for Maytas
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First Published: Thu, Mar 05 2009. 11 54 PM IST
Updated: Thu, Mar 05 2009. 11 54 PM IST
New Delhi: Minutes after the the Company Law Board, or CLB, allowed the government to appoint four nominee directors for Maytas Infra Ltd and one for Maytas Properties Ltd, the government on Thursday announced the names of two such directors for Maytas Infra.
One of them will be on the board of Maytas Properties as well, minister for corporate affairs Prem Chand Gupta said. The government had earlier approached CLB seeking to supersede the board of Maytas Infra.
“Of the four directors for Maytas Infra, the government has selected tax lawyer O.P. Vaish and Ved Jain, immediate past president, Institute of Chartered Accountants of India,” Gupta said.
Two other nominee directors for Maytas Infra, including the chairperson, will be announced soon, he said.
Maytas Infra and Maytas Properties are run by the kin of B. Ramalinga Raju, the founder of fraud-hit software giant Satyam Computer Services Ltd, who is now under judicial custody.
CLB has also laid down certain conditions. “The quorum for board meeting (for Maytas Infra) shall be a minimum of four directors with the presence of at least two of the nominee directors and one existing director.
For any decision in the board, the affirmative votes of at least two nominee directors is mandatory,” says the CLB order, a copy of which was reviewed by Mint.
The order said government agencies, including banks, will cooperate with the board in handling the affairs of the firm, particularly in implementing infrastructural projects.
The order also said the boards of both Maytas Infra and Maytas Properties will apprise the Union government of the affairs of the company on a monthly basis, besides cooperating with the investigating authorities.
For Maytas Properties, CLB said, the quorum for board meetings shall be three directors, including the nominee director. However, affirmative vote of Ved Jain on any decision is mandatory, Gupta said.
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First Published: Thu, Mar 05 2009. 11 54 PM IST