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"That is not the mandate of the (three-member) board," Corporate Affairs Minister Prem Chand Gupta told reporters when asked whether there was a possibility of a buyout of the beleaguered IT major whose board has been superseded by the Government.
Satyam Computer earlier decided to appoint investment banker DSP Merrill Lynch to look for a strategic partner and explore possibilities of merger and acquisition. The investment company, however, backed out of the deal after the disclosure of fraud by Satyam's founder Ramalinga Raju.
The first priority of the newly appointed three-member Satyam board, Gupta said, "Would clearly be to restore the company's credibility, customer confidence and employee morale, as also to safeguard the interest of investors and other stakeholders."
The Government appointed a three-member board comprising noted banker HDFC chairman Deepak Parekh, IT expert and past Nasscom president Kiran Karnik and former Sebi member C Achutan.
The new board will have its first meeting tomorrow at Hyderabad, where the company is headquartered.
Gupta further said more members would be appointed on the board of Satyam, which as per the recent Company Law Board (CLB) order can have a maximum of 10 members.
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As we know that the concern company is facing bad time,But this will not be lasted fora long time.our govt.is qutie suffice to obviate such type of matters.And govt has proved this thing by appointing new board of directors,consisting three members who are having expertise in their respective field to rebuild or to reach this copany in to new heights.And i believe that company will be again shining like a star on the sky of indian corporate.
So much has been written about Raju and his goof up. What he did was patently wrong but as media tries to mak out the case all the focus is on the role of Raju.Non-Governmental organization has several checks and balances in place. One of these mechanism is Account Audits. When a company like Pricewaterhous Coopers certify accounts of a company then there is little other organizations can do who rely on this type of information to find frauds.Unfortunately while Raju and his cohorts are justifiable prosecuted nobody has till date tried to look into role of Pricewatherhouse Coopers. Is it that it is a "Firangi" company with right nuts and bolts setting across the border or we are just foolish enough not to prosecute them.PWC must be tried for its role in letting this scam perpetuate and should be fined and punished so that companies who have responsibilites of securing the trust do not get tempted again to help corruption for petty gains.
Well done. The regular activities of the company should start immediately and world should know that the company is not dependent on one individual and there are people to take care of investors and employees. The issue of Mr.Ramalingaraju will be taken care by authorities concerned, whether judiciary, SEBI, RBI or whoever it is. But with this the image of the company and country should not be and need not be put down. Now it is the responsibility of the three Directors to undo the damage and bring the company back on rails as quickly as possible and the company should be governed by professionals as a really professional company not aligned to any group. It is the acid test for Corporate India. All the best for new management team and Board of Directors.