Board to raise cash for Satyam

The Centre on Sunday announced a three-member board for Satyam Computer Services Ltd headed by top banker Deepak Parekh, chairman of the Housing Develop-ment Finance Corporation (HDFC). The two other directors are the former Nasscom president, Dr Kiran Karnik, and Mr C. Achuthan, former presiding officer of the Securities Appellate Tribunal and former Sebi member.

Mr Parekh, who reached Hyderabad on Sunday evening, said the three directors would meet the registrar of companies later on Sunday evening and that the first formal meeting of the new board would be held at the Satyam office at 9.30 on Monday morning. He said the first priority for the directors would be to restore confidence among the staff and clients of the company.

It will be an independent board with full authority to take decisions, the corporate affairs minister, Mr Prem Chand Gupta said. Mr Achuthan, who runs his own thriving law firm, said: “The topmost priority of the team would be to put back on the rails the scam-tainted IT company and ensure all those guilty do not go scot-free.”

Mr Karnik said the board will ensure that Satyam’s business operations go on. “This would be important from the point of view of both employees and customers. It will also create a sense that India continues to be a safe, secure and reliable IT destination,” said Mr Karnik. He said that every global investor who had spoken to him had expressed great confidence in the Indian IT sector. “This is based not on some feelgood factor but on our past record, and they recognise this is just one aberration,” said Mr Karnik.
Mr Prem Chand Gupta said the government, which can appoint up to 10 members on the Satyam board, would appoint the other members when the need arose. “As per the Companies Act there must be a minimum three members, and we have announced that,” he said.

On appointing investment bank Lazard, which had bought 4.5 crore Satyam shares in the last two days of trading, as well as representatives of the LIC, Mr Gupta said the government was open to all options. The minister said the board would take care of Satyam’s liquidity problems.