Govt appoints nominees on Maytas companies’ boards

Govt appoints nominees on Maytas companies’ boards
PTI
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First Published: Thu, Mar 05 2009. 04 08 PM IST
Updated: Thu, Mar 05 2009. 04 08 PM IST
New Delhi: The Government Thursday appointed former ICAI President Ved Jain and noted tax lawyer O P Vaish on the board of Maytas Infra, a company promoted by the kin of Satyam Computer founder B Ramalinga Raju.
Ved Jain has been appointed director on the board of Maytas Properties, another company promoted by the Raju family.
Briefing newspersons, corporate affairs minister Prem Chand Gupta said, “Two other directors including chairman of Maytas Infra will be appointed later.”
Earlier the Company Law Board allowed the government to appoint four directors on the board of Maytas Infra and one on the board of Maytas Properties.
Partly accepting the petitions of the government, the CLB said that four nominee directors on the board of Maytas Infra would include chairman.
The government had sought the authorisation of the CLB to supersede the boards of Maytas Infra and Maytas Properties, and appoint ten nominees on each board.
The CLB order further said the two boards would be required to furnish monthly reports on the affairs of the companies to the Government as well as the CLB starting from April 2009.
Noting that the Boards will have full powers to deal with the affairs of the companies, the CLB said no government agency will initiate any civil or criminal proceedings against the nominated directors without its prior approvals.
Gupta said the government had moved the CLB to enable change of management in these two companies to prevent “mismanagement and enable transparency in their functioning”.
As per the CLB order in case of Maytas Infra, he said, “the quorum for the board meeting will require the presence of at least nominee directors.”
In regard with Maytas Properties, he said, all board decisions would need an affirmative vote by the nominee director.
The government, Gupta added, would continue to “take steps as necessary to enable (Maytas companies) to function in accordance with sound corporate governance and principles in the interest of all stakeholders.”
He said the government had agreed to the arrangement proposed by the CLB, as it allows “government control in the conduct of affairs of the two companies, without compromising with the imperative of revamping the management of these firms.”
The arrangement, it may be recalled, was proposed by the CLB after hearing the two Maytas firms, which had filed a caveat in the board to prevent it from passing any exparte order.
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First Published: Thu, Mar 05 2009. 04 08 PM IST