The government today disbanded the current Board of troubled IT company Satyam and would nominate 10 directors to the Board.
The government today disbanded the current Board of troubled IT company Satyam and would nominate 10 directors to the Board.
ADVERTISEMENT
"The current Board ceases to exist and there would not be any meeting tomorrow," Corporate Affairs Minister Prem Chand Gupta said.
"The Centre is considering appointment of suitable persons as directors of Satyam following interim permission by the Company Law Board," he said.
The new Board would meet in the next seven days. The current Board was left with only three members from the original nine.
Gupta said that the new board would decide on the new management for Satyam Computer and there was no decision to take over the management as yet.
He also said that the IT firm's auditors PwC, if found guilty, would be banned in the country.
"The government has decided to approach the Company Law Board to ensure that the operations of the company continue uniterrupted," Gupta said, adding that the current board has failed in what it was supposed to do.
All the current board members were being removed and there would not be any meeting tomorrow, he added.
The government had approached the CLB, which has allowed it to restrain the current board members from functioning as the directors at the company.
On Wednesday, Sataym's Founder and Chairman Ramalinga Raju resigned from the company after disclosing massive financial irregularities at the company, which emerged as the biggest corporate fraud in the country.
On the same day, its CEO and MD Rama Raju also resigned, while the company's CFO also sent in his resignation yesterday
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
