The Company Law Board (CLB), which replaced the Satyam board with government-appointed directors on January 9, after company founder B Ramalinga Raju?s revelation of a Rs 7,400-core fraud, has said that the new board is not keeping it in the loop.
CLB sources said the new board of directors should not only give out the important information to the corporate affairs ministry (MCA), but also to the CLB.
Till now, CLB has not received any report from the new board of directors of Satyam on investigations, going on in the company.
According to sources, it was the duty of the new board to submit a report of the company?s investigation into the fraud on a periodical basis to CLB.
CLB?s interim decision, which asked the former directors to discontinue from the board of the company, was taken keeping in view the urgency of the situation, sources said.
While replacing the company?s board, CLB had given time till February 20 to the previous board members to present their case. CLB had also allowed the newly appointed board members of crisis-ridden Satyam Computer to act fearlessly by granting immunity to them from any action by the government agencies.
S Balasubramanian, chairman, CLB had said in an order, ?To ensure that the present board of directors discharge its function without any apprehension of being subjected to criminal, civil or punitive action, I direct that none of the state or central government agencies shall initiate any action against the present directors.?
CLB had also restrained the former whole-time directors, chairman, the chief financial officer and company secretary of Satyam from selling or mortgaging their assets. This order was passed by the CLB to retrain the former members of the top management from siphoning off funds from Satyam.