News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
« General »
 How much gold can you keep at home as per income tax rules?
 New income tax slab: Rules changed, no exemption on meal vouchers & coupons
 Pharma shines in advance tax pay
 SDMC starts offline facility for depositing property tax
 Covid-19 crisis threatens to wipe out gains from corporation tax cut
 Big tax shortfall raises Centre’s fiscal deficit to 4.6%
 Experience with GST holds valuable lessons for One Nation One Ration Card
 Firms may get input tax credit for masks, PPEs
 Traders seek deferring of property tax
 COVID-19: Kerala Government extends Time Limit of Payment of License Fee and Renewal of Registration under various Acts
 Rajasthan HC grants Bail to Chartered Accountant accused of Corruption and Money Laundering

Experts unanimously hail govt's Satyam intervention
January, 10th 2009

Even as the government, late on Friday evening, decided to take the drastic step of dissolving the current management of in-the-news IT major Satyam, experts unanimously welcomed the move. The reaction was clear: the move will result in better fortunes for the beleaguered company.

Ganesh Natarajan, Chairman, NASSCOM, said it is a right move for the simple reason that there is so much of question against the current board and the management involvement. Thus, separation of board is absolutely in the right direction, because a strong board giving support and direction to management will also enable the management to perform its function in terms of customers and employees.

Commenting on governments consideration of Nasscom likely being on Satyams board, Natarajan said, At this moment, any support we can give to the government to restore confidence primarily in Satyam and in the industry, we will do and depending on what kind of role they would like us to play, we would be quite happy to consider that very seriously.

While considering the members on Satyams board, he feels there are two views on that -- bringing leaders of repute, who have the ability to rise beyond their companys own requirements; would be good, because this is a large organisation and leaders who have handled IT organisations before can add value. There is this whole issue of conflict of interest, but I would recommend that you bring in people of repute because that will really strengthen the hands of management as well as the board.

Meanwhile, talking about the employees future, Natarajan said Satyam should stay put, because any exodus of employees will lead to problems with customers and any customer of Satyam is a customer of India. We have to ensure that there is stability and I am delighted that the government is acted so fast and stepped in so quickly because now we have a very good chance of restoring confidence in the very short-term.

There are two views on that: bringing leaders of repute, who have the ability to rise beyond their companys own requirements; would be good, because this is a large organisation and leaders who have handled IT organisations before can add value. There is this whole issue of conflict of interest, but I would recommend that you bring in people of repute because that will really strengthen the hands of management as well as the board.

I am delighted at this news. It shows that the government means business, said HP Ranina, Advocate, Supreme Court. What will happen now is that this new board will decide whether this committee the task force that was set up and which had a press conference yesterday should be permitted to continue, because if they are permitted only then will they be able to fulfill their obligations.

Ranina, however, said that for continuitys sake, some current management members should be retained. The new board will first have to make an assessment of the existing senior executives who are in the management. They will then take a view whether they should continue or some of them should be asked to leave because the new board will also have difficulty initially in getting its grips over the very serious problems that are facing this company. So they will have, to some extent, rely on the existing top management.

Ranina also said would like to see, among the 10-member panel to beappointed by the government, a nominee of the LIC it is a major shareholder and representatives from market regulator Sebi, Nasscom and a past president of the ICAI.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting