Indian government forces board appointments on Satyam

Monday, 12 January 2009

Engulfed by a fraud scandal and its very existence under threat, services group Satyam has had three new members on a newly constituted board forced on it by the Indian Ministry of Corporate Affairs.

Speaking in Hyderabad, a spokesman for Satyam announced the appointment of Deepak S Parekh, chairman of HDFC Bank, Kiran Karnik, former president of NASSCOM and C Achuthan, director at the National Stock Exchange, former member of SEBI, and former chairman of Securities Appellate Tribunal.

Satyam welcomed the appointments to its newly formed board of “three distinguished members”, claiming that “this key development” will ensure the company’s continued operations, help maintain customer confidence and associated morale, as well as restoring investor trust.

“The new members are eminent and accomplished leaders, recognised in India and around the world for their expertise in finance, law, administration and the IT services industry. Satyam's leadership team has complete confidence in them and pledges to work closely and in full cooperation with the new board," the Satyam spokesman said.

With the board to convene in the next 24 hours, the company said the appointments were a vital stabilising development for Satyam and marked the beginning of a new chapter in the company's history.

“It is the best news we've received in the past four weeks," the company spokesperson added.