Centre recalls four directors from Satyam

The Company Law Board (CLB), on Friday, allowed the Centre to withdraw four of the six directors appointed by it on the Board of Directors of the Mahindra Satyam.

Acting on the application filed by the Centre the CLB in its order said the remaining two directors would continue till such time the Centre desired to continue them, however, not beyond a period of three years.

Following the CLB order the Ministry of Corporate Affairs decided to retain A Achutan and T N Manoharan as members of the board of directors of the Mahindra Satyam while recalling the four of its nominee directors.  These two directors will not be included in counting the maximum number of directors that the company can have as per its articles.

Probe on scam
The government is understood to have decided to retain Achutan and Manoharan, both of whom have expertise on company law as well as accounting procedure, in the Board of the Mahindra Satyam in view of ongoing probe into the Satyam scam, official sources said.

The government feels that the presence of Achutan and Manoharan on the board would aid the ongoing probe into the scam, sources said. The four government nominee directors who have been recalled included IT expert Kiran Karnik, who headed the government appointed Board of the Satyam Computers, Deepak Parekh, Tarun Das,  and Suryakant Balkrishna Mainak.