Govt disbands Satyam Board

Agencies Tags : business, satyam, disbands, govt, board Posted: Friday , Jan 09, 2009 at 2051 hrs New Delhi:

Related Articles
Most Read Articles

Ministry asks PSUs to go easy on Satyam Satyam close to securing funding, top management Raju inflated employee nos by nearly 12,000: CID Satyam fiasco like 26/11, difficult to stop: LIC Raju in prison but yet to be logged out of Satyam Govt calls Satyam a unique case, mulls bailout

We know talks are important, but end violence first: India to Pak Govt says no US support for UNSC permanent seat Unravelling the sari myth Also in China Will complete Doha Round by 2010: India agrees with G8 'Kambakkht Ishq' grosses over Rs 46 cr worldwide: Eros Experts ask real estate to realise social responsibility

Discussion
Blogs

India a key global p... - By Ramesh Global power - By richard Bandikoots ! - By chanakya This is sheer trache... - By Andrew Murderers - By Balsing Jlt - By mtg Wake up... - By Mitali

BJP and Hindutva Do we follow the law ?Give this a thought Railway budget

The government on Friday disbanded the current board of troubled IT company Satyam and would nominate 10 directors to the board.

"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 uninterrupted," 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 on Saturday, 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 on Thursday.

Express Specials

Comments

Post comment

View all Comments (11) |

protect the stakeholder interestsBy: shyam kishore | 10-Jan-2009 Reply | Forward The goverment and the public is striking Satyam with vengence.This is wrong .Satayam as a company has done nothing wrong . This is a malpractice of a few individuals .We must minimise the collateral damage and protect the other stake holder interest in this company who invested here on the faith on India.we are thowing away hopes of 53000 employees hopes and aspirations for no wrong of them. we must get satyam taken over by a larger IT company or run by the goverment as a ressurece measure .We can have politicians do the scams and still rule us . and goverment still sustain them .Please dont crucify an institution for the wrong doing of a few individual .lets solve this issue constructivly

GoodBy: Adab | 10-Jan-2009 Reply | Forward pro active.

Satyam Board supersedingBy: G N Sivaraman | 10-Jan-2009 Reply | Forward The Govt's move in superseing Satyam board is a step in the right direction.First, the country's image has to be save in the in the international scene.Seccondly, the company's affair has to be carrie without interruption and all present clients have to be assured of best continuous services.Thirdly, in the interest of 45000 employees and their families the govt;s intervention is a must.If top profesionals are roped in it will not be a difficult task to carry on the business as usual and do their best to retrieve the damage caused.

Satyam GateBy: vk | 10-Jan-2009 Reply | Forward The whole process of financial statement is faulty, you are asking auditors to certify your work and get paid, and raise. Maybe we should term limit a company for auditing and also force deposit a huge sum to SEBI for any fraud happens like this.

USA Bank Fails VS Satyam FailsBy: Karthik | 10-Jan-2009 Reply | Forward Raju I feel sorry for you. Even compared to USA Banks failing, i dont find much difference. Bankruptcy of US Bank cannot happen in a day time. But hats off for not loosing your life into this problem and bold enough to face the home land law of justice.You are Great! And also this is ever our people will understand the role of Government.