Government recalls 4 of its 6 directors on Satyam board

The government today issued an order recalling four of the six directors appointed by it on the Satyam Computer Services (now Mahindra Satyam) board, after the Company Law Board (CLB) gave it permission to withdraw four of the six directors appointed by it on the company's board.

Following the order, issued late on Friday, Kiran Karnik, Deepak Parekh, Tarun Das and Suryakant Balkrishna Mainak will be taken out of the board of Mahindra Satyam while the other two directors, C Achutan and T N Manoharan, will continue on the board for some more time.

CLB, which had reserved the date of hearing on 2 July, allowed the government's application in this regard and said the remaining directors will continue till such time the central government wants them to, but not beyond a period of three years.

However, these two directors will not be included in counting the maximum number of directors that the company can have as per its articles, the CLB said.

The government had moved an application before the CLB that since the formal induction of strategic investor, as per the approved plan, the government action stands completed with the allotment of 31 per cent preferential shares and completion of public offer to acquire 20 per cent shares under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, and hence it be allowed to recall four of its nominee directors and continue with two of its nominee directors to ensure compliance of the bid conditions and conditions imposed by the CLB.