New Delhi: In a move to stabilise the sinking Satyam Computers, the Government on Sunday nominated noted banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achutan to the IT company's board.
The three-member board is expected to meet in the next 24 hours to decide on the other members and chairman, Corporate Affairs Minister PC Gupta said.
Gupta added that the new board has to take a decision on all the issues troubling the IT giant. A maximum of 10 members will be appointed.
On the demand by institutional investors like LIC and Lazard for a representation on the Board, Gupta said, "All options are open in the interest of the company."
The board would have eminent personalities from finance, law, IT and administration, Gupta said.
Minutes after the news broke, Karnik told CNN-IBN, "We have a challenging task ahead of us. We have to make sure that we deliver to Satyam's customers and also motivate the employees. Continuity has to be ensured in the company."
While Infosys Director (HR) Mohandas Pai said, "The Government has made a wise choice. The new board members know how the industry works."
Meanwhile, Andhra Pradesh Chief Minister YSR Reddy said, “We are trying to take all needful steps in coordination with the Government of India to see that the future of the 53,000 Satyam employees and the money of the shareholders is salvaged.”
“I wish the new board members do a good job, and we will cooperate at all needful levels,” Reddy added.
Satyam Computers has welcomed the Union Government's move to disband the existing board.
"We welcome this decision which will ensure uninterrupted operations and restore the confidence of all employees, customers and shareholders across the globe," said a Satyam press release.
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The decision to disband Satyam board and restrain its members from taking any action was announced by Minister of Corporate Affairs Prem Chand Gupta on Friday in New Delhi.Wooing suitors
Analysts said recent hopes that Satyam could survive by being taken over had been dashed given the scope of the scandal and the potential for big legal losses.
"The largest scandal in India's corporate history calls into question the viability of the company as an independent entity," consultancy Forrester said in a January 8 research note.
"As a result, sourcing and IT executives need to actively review their exposure to the company and their options as a cloud of uncertainty hangs over the company. Both clients and employees will desert Satyam as a result of competitive wooing. In our interactions with several of Satyam's employees across the organisation they showed utter frustration," it noted.
Satyam specialises in business software and back-office services for clients including General Electric and Nestle.
Satyam said it was contacting main customers individually to assure them services would continue as normal, and said it had received expressions of support.
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