'Govt change wont impact Satyam board'

Written by Rachana Khanzode | Mumbai | Updated: May 17 2009, 04:58am hrs
The government-appointed Satyam Computer Service board isnt expected to see any impact with the new government coming into picture, says Kiran Karnik, chairman of the Satyam board. Satyam still holds on to its government appointed board members, even after Tech Mahindra acquired the 31% stake in the company last month.

Satyam is a private company, now with Tech Mahindra, and whosoever forms the new government will have no impact on it, he told FE.

Deepak Parekh, chairman at HDFC and a Satyam board member, when contacted, refused to comment on the subject. Though Tech Mahindra has zeroed in and has got approval from the Company Law Board to appoint Vineet Nayyar, CP Gurnani, Sanjay Kalra and Ulhas N Yargon on the board, the process has been delayed. This is largely because the company hasnt received regulatory antitrust approvals from the US to appoint new directors.

Tech Mahindra is waiting for regulatory approvals from the US which are expected to come in the next 1-2 weeks post which the company can bring new directors in the board, Karnik said. He on Thursday met Prime Minister Manmohan Singh and Planning Commission deputy chairman Montek Singh Ahluwalia.

However, industry veterans say that the new government might bring in certain impact, irrespective of which party comes to power. Ganesh Natarajan, vice-chairman & CEO, Zensar Technologies, and ex-chairman, Nasscom, says, There wouldnt be any impact on the board but there could be delays in certain regulatory approval. Though most of the approvals have come in, the paper work needs to be done, which might get delayed. Vijay Mukhi, consultant-technology practice, DSK Legal, says, When a new government is formed the people associated with the old government also move on. So, irrespective of who forms the new government, except Kiran Karnik, other board members might be asked to go, which would be unfortunate for the company, as all of them have done well.

Talking on his role in the government appointed board going ahead, Karnik said, As earlier expressed, I would like to move out of the board as my responsibility has been completed.