Govt awaits CLB nod on nominated directors

The ministry of corporate affairs has moved an application in the Company Law Board (CLB) to recall its nominated directors from the board of Mahindra Satyam (SATYAM.BO : 103.35 +0.7). The CLB is expected to pass an order on Monday.

Corporate affairs minister Salman Khurshid on Saturday said, "We have moved an application in the CLB to recall our nominated directors from the board of Mahindra Satyam. The government directors have performed their task efficiently and now it is for the board to decide whether they want the nominated members to continue."

On whether all six government nominees will be recalled, Khurshid said, "This decision lies in the hands of the board. Our role was only to appoint directors at the time of crisis which is now over."

Kiran Karnik, chairman of the board of Mahindra Satyam, said, "The job is done but the investigation is on and if the government feels that the investigation would be aided by having a presence on the board, then may be one or two directors can continue."

Karnik further said, "Most of us can now withdraw as the job that we were supposed to do is almost over."

When asked about the members who could exit, Karnik refused to name anyone and said, "We have already approached the government and I expect something in the next few days."

The board of the company, formerly known as Satyam Computer Services, was dissolved by the government in January after its then chairman and founder Ramalinga Raju revealed India's biggest corporate accounting fraud.

Tech Mahindra (TECHM.NS : 934.05 +3.65) bought Satyam in an open auction in April and last month re-named it as Mahindra Satyam .