The government on Sunday appointed three members to the new board of the troubled Satyam Computer Services. The three members on the new board include Deepak Parekh, chairman of the Housing Development Finance Corp, Kiran Karnik, former president of the National Association of Software and Service Companies, and C. Achuthan, a former tribunal member of the capital market watchdog, the Securities & Exchange Board of India.
"Further appointment to the board will be made accordingly, these three members will chart the future course of action for the time being," Prem Chand Gupta, Minister of Corporate Affairs, said.
According to reports, the newly constituted board would meet Sunday night unofficially and would hold the official meeting tomorrow morning. The board meeting would be held in Satyam headquarteres in Hyderabad.
Satyam Computer has been in trouble ever since its promoter and former chairman B Ramalinga Raju revealed in his letter sent to stock exchange authorities last week that about $1 billion, or 94 percent of the cash and bank balances on Satyam's books at end-September, were inflated.
The revelations shook the India Inc, and the investor confidence had hit a trough. Satyam stock had a hit a low of Rs 6.5 on Friday to close at Rs 20 at the end of the trading session.
The government and the regulatory bodies such as Department of Company Affairs and SEBI have intervened in the company's affairs ever since.
The government on Friday night had disbanded the existing Satyam board and also scrapped the board meeting of Saturday.
The Andhra Pradesh Police on Saturday evening arrested B Ramalinga Raju, former chairman, Rama Raju, MD and brother of chairman Raju. The police has also arrested Satyam CFO Vadlamani Srinivas. All three have been charged with with criminal conspiracy, forgery, criminal breach of trust and falsification of documents.
Satyam's earlier board included independent directors like Krishna Palepu of Harvard University, Vinod Dham, the creator of Pentium chip, and M Rammohan Rao of ISB (who quit as dean last week after the controversy) whose role have came under severe criticism after they failed to check the fraud in the company.