CLB allows central Government to Withdraw 4 of the 6 directors appointed by it on the board of Satyam

Last updated: 18 July 2009

The Company Law Board here today gave permission to the Central Government to withdraw FOUR of the SIX directors appointed by it on the Board of Directors of the Satyam Computer Services Lmited. The Principal Bench of the Company Law Board, allowing the application of the Central Government in this regard today passed the order; which it had reserved on the date of hearing on 2nd July, 2009; and said that the remaining directors will continue till such time the Central Government desires to continue them, however, not beyond a period of 3 years. These two directors shall NOT be included in counting the maximum number of directors that the company can have as per its Articles.

On the 2nd of this month the Central Government had moved an application before the Company Law Board that since the formal induction of strategic investor, as per plan laid down by the Company and approved by the Company Law Board, action stands completed with the allotment of 31% preferential shares and completion of public offer to acquire 20% shares under SEBI (substantial Acquisition of Shares and Takeovers) Regulations, hence it be allowed to: recall four of its nominee directors; and continue with two of its nominee directors to ensure that the bid conditions and conditions imposed by the Company Law Board are complied with in letter and spirit.

Following the Order, the Government today evening decided to retain Shri C. Achutan and Shri T. N. Manoharan on the Board of the Company. The Central Government, after getting permission from the Company Law Board on 9th January this year, had appointed the following six eminent persons as directors on the Board of Company under the Chairmanship of Shri Kiran Karnik on 11.01.2009 and 13.01.2009 : Sh. Kiran Karnik, Shri Deepak Parekh, Shri C. Achutan, Shri Tarun Das, Shri T.N.Manoharan and Shri Suryakant Balkrishna Mainak.