Arvind Rao resigns as OnMobile chief
Arvind Rao resigns as OnMobile chief
Mumbai: Arvind Rao, managing director and chief executive officer of Bangalore-based OnMobile Global Ltd, a leader in mobile value-added services, or VAS, resigned on Monday over “weaknesses in some processes," the company said.
The board accepted his resignation with immediate effect, according to a company press statement.
Mouli Raman, co-founder and executive director, will take on the role of interim managing director. The company has also initiated a search for a new chief executive.
“Based on a recently-concluded special review completed by our legal advisors, Amarchand Mangaldas and Suresh A. Shroff, advocates duly supported by KPMG, the board of directors today took on record the report submitted and noted that the review had identified weaknesses in some processes," the company said on Monday.
“The company has initiated steps to rectify all the weaknesses. While the review has identified some weaknesses, strong alternate controls have ensured that the company did not suffer any loss.
Recognizing that these weaknesses took place during his tenure, Arvind Rao has submitted his resignation," the company said.
H.H. Haight, chairman of the board, speaking after the meeting, said: “I respect Arvind’s decision. Arvind has contributed greatly to OnMobile’s growth. As a company we are committed to upholding the highest corporate governance standards and we seek the continued support of all the stakeholders to help OnMobile realize its true potential."
On Monday, shares of OnMobile dropped 3.31% to close at Rs33.60 on BSE. The benchmark Sensex lost 0.74% to close at 17,391.98 points. For the April-June quarter, the stock has lost 49.1% even as the Sensex gained 0.15%.
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