The government on Friday barred the board of embattled outsourcer Satyam Computer Services from holding its scheduled board meeting on Saturday and said it would be appointing 10 new directors soon.
“The government is considering appointment of suitable persons as directors of Satyam,” Corporate Affairs Minister Prem Chand Gupta told a news conference.
Gupta added the newly constituted board must meet within seven days.
Stand-in CEO Ram Mynampati has said Satyam, whose market value has shrivelled to $330 million from over $7 billion just six months ago, faces a crisis of unimaginable proportions following chairman and founder Ramalinga Raju’s admission of years of accounting fraud on Wednesday.
Satyam shares plunged to an 11-year low on Friday as analysts said India’s biggest corporate scandal in memory called into question the future of the outsourcing firm.