Govt to recall its six directors from Mahindra Satyam

Govt to recall its six directors from Mahindra Satyam

Six months after the government superseded Satyam Computer’s board and appointed its nominees on it, the Centre is likely to move the Company Law Board this week for recalling these directors to hand over effectively the management to the new owner of IT firm, Tech Mahindra.

According to official sources, the Ministry of Corporate Affairs may move CLB on Wednesday  for recalling the six nominee directors appointed by it in January after B Ramalinga Raju, the founder of the IT firm, confessed to cooking of books of accounts of the company for several years.

Sources said that as the job of the government is over, effective handover of the management to the new owner, Tech Mahindra, has become the sole concern of the government.

“For effective handover of the management it is necessary,” a source said.

Tech Mahindra, through its subsidiary Venturbay Consultants, acquired a majority stake in the Hyderabad-based firm in April and renamed it as Mahindra Satyam.

Also, it had appointed four nominee directors Vineet Nayyar, C P Gurnani, Sanjay Kalra and Ulhas N Yargop on the board of the IT firm pursuant to the completion of share purchase agreement between Tech Mahindra and Satyam Computer Services.

The new owner has appointed C P Gurnani as CEO of Mahindra Satyam.

Earlier, Corporate Affairs Minister Salman Khurshid had also hinted that since the job of directors is done, they may be recalled.

“Our job is done. I think they can now be phased out,” Khurshid had said.
In January, the government had sacked the board of the firm and had appointed six directors comprising.