Tech Mahindra gets control over Satyam board

Mahindra Satyam Logo

The government has further reduced its role in Satyam Computer Services (rebranded as Mahindra Satyam), after Tech Mahindra completed the open offer process and then followed up by hiking its stake through a preferential allotment. That completes a major part of its task ensuring that Satyam stays afloat.
 

Kiran Karnik, Deepak Parekh, Tarun Das and SB Mainak are no longer on the board while C Achutan and TN Manoharan will continue. Kiran Karnik was acting as the chairman for the company. Vineet Nayyar is the vice-chairman of Satyam.
 

Now, there is little left for the government to do, except for the investigations into the scam, the restatement of financials and a smooth transition. There is the question of post-acquisition integration and effect on employees; a number of employees have been asked to take a sabbatical. And, finally there still remains the litigation involving companies or shareholders who have taken Satyam to court.

Tech Mahindra will now be in majority control of the board, with four members in a six member board. It may choose to appoint more members to the board too including a new chairman.

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