Government nominees to replace Satyam board

09 January 2009

The government today disbanded the board of Satyam Computer Services and has decided to appoint 10 new nominee-directors in its place.

Satyam's board meeting planned for tomorrow now stands cancelled and the new board will meet within seven days to take a decision on a new management team.

The Satyam board was to meet in Hyderabad tomorrow to discuss the crisis in the wake of the revelations of Rs7,800 crore fraud.

Meanwhile, employees of Satyam Computer Services have refuted reports of having received emails suggesting a freeze on salaries for two months. Satyam has over 50,000 employees, and their fate is in limbo in the wake of the fiasco.

Founder B Ramalinga Raju has been summoned by market regulator SEBI tomorrow.

"The current board ceases to exist and there would not be any meeting tomorrow,'' corporate affairs minister Prem Chand Gupta said in a release, adding ''The new board will meet in the next seven days."