Press Trust of India / New Delhi April 16, 2009
Calling Satyam a "weeping orphan", the Company Law Board (CLB) today said the Hyderabad-based company will now be adopted and nurtured by Venturbay, a subsidiary of Tech Mahindra.
Preferring to call its order as "Adoption of Orphan Satyam" or "Orphan Satyam Adopted", CLB Chairman S Balasubramanian said, having won various laurels, mostly in relation to corporate governance, Satyam "became a weeping orphan overnight when its promoter B Ramalinga Raju abandoned it after making a confessional statement."
Satyam's founder Raju abandoned the company after admitting accounting fraud to the tune of over Rs 7,000 crore on January 7, said the CLB order while clearing the decks for takeover of the company by Tech Mahindra.
Complementing the government-nominated board for selecting a technically and financial competent strategic investor, the CLB chief said, Venturbay will "adopt and nurture ailing Satyam."
Earlier, the order said, the government reconstituted the Satyam board "to wipe out its (Satyam's) tears and nurture the company which was necessary in the interest of all the stake holders".
The government-appointed board headed by Nasscom past president Kiran Karnik, the order said, "acted not only as directors but also like foster fathers to heal the wounds of the orphaned Satyam."
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