India's Company Law Board, or CLB, on the government's request, will recall the six directors it had appointed to the board of Satyam Computer Services Ltd. (SAY), now called Mahindra Satyam, the Wall Street Journal reported Friday. The order is expected to come on Friday, as per CLB Chairman Balasubramanian, who heads the quasi-judicial body on company affairs.
It was in January this year that CLB, acting on a request from the government, appointed Kiran Karnik, who is the current chairman, Deepak Parekh, C Achuthan, Tarun Das, Suryakant Mainak and T N Manoharan on the board of Satyam, following a confessional statement by its founder Ramalinga Raju.
Earlier, media had reported that four board members were on their way out, while the remaining two would be asked to continue for the moment.
The latest move follows the appointment of four nominees to the Satyam board as well as a top-level executive team by its new owners, Tech Mahindra Ltd., earlier in the month. Tech Mahindra, through its subsidiary Venturbay Consultants, acquired a 31% stake in Mahindra Satyam, and reportedly is in the process of increasing its holding to 42.7%.
As per reports, the board of Mahindra Satyam will meet on July 10 to discuss the second round of preferential share allotment to raise Tech Mahindra's stake in the firm to about 42.7%.
SAY closed Thursday's regular trading session at $3.34, up $0.09 or 2.77%, on a volume of 2.9 million shares, against a three-month average volume of 5.5 million shares.
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