CLB may withdraw its board members from Satyam after June

24 May 2009, PTI


NEW DELHI: Tech Mahindra, the new owner of Satyam, is likely to have full-board representation on the scam-tainted company soon as the government withdraws its six board members anytime next month.

A board member of Satyam said: "We get the indication from Company Law Board that once the four Tech Mahindra nominees join the Satyam board in June 1, CLB may direct the government - nominated board members to resign and ask Tech Mahindra to have the entire board representation any day after that.

Sources in CLB said it may give the direction after getting status report from the company. But at the moment there was no such request either from the government or any of the board members appointed by it.

When contacted Satyam Board Chairman Kiran Karnik said "Our (the government-inducted board's) job is done. There is a new owner now, there is stability in the company".

The company, according to sources, is also looking at changing the brand of Satyam like name and logo as it perceives the word fraud is now associated with it forever. These are long term policy decisions and can only happen once Tech Mahindra fully takes over.

Once the government takes off its board members, Tech Mahindra along with its own members can also appoint independent members as per the requirement, said the member.

Yesterday Venturbay Consultants (an arm of Tech Mahindra) appointed four nominees on the board of Satyam, which will make a total of 10 directors on the Board.

The CLB in January had appointed Kiran Karnik, Deepak S Parekh, C Achuthan, Tarun Das, S Balakrisha Mainak and T N Manoharan to the Board and had said they would continue on the Board until further orders of Company Law Board.

Tech Mahindra acquired 31 per cent in Satyam Computers in April and its open offer for another 20 per cent would start in June 12.