Aftetr having superde its board last week (See: Government nominees to replace Satyam board), the government has moved speedily and put together a respected three-member board at Satyam that even the staunches critics of the gvernment cannot fault.
The new board it named yesterday, brings together highly respected individuals from the fields of finance, IT and the legal and regulatory affairs.
HDFC chairman Deepak Parekh, former NASSCOM chief Kiran Karnik and former SEBI member C Achuthan constitute the new board in place of Satyam's earlier board during the company's recent travails starting with the aborted attempt to acquire Maytas and its promoters confessions of puffing up the account books of the country's fourth-largest IT firm.
The three members will decide on the chairman from amongst themselves after they meet formally at Hyderabad today to decide on their next step.
''The new board is expected to convene immediately within the next 24 hours to decide on the future course of action. We are confident they would give leadership to the company,'' said minister for corporate affairs, Prem Chand Gupta.
Gupta said that the government and the board would do what is ''in the best interest'' of Satyam, its customers and staff.
He also said additional board members may be appointed as and when required and added that the board would have complete independence to act swiftly.
The minimum board member as required by law is 3 and the government has said it may appoint upto 10 directors at the most.
Financial institutions like Lazard, which holds 2.5 per cent shares of Satyam, has asked for a board representation but it looks like it will have to wait. Other institutions like LIC and Fidelity also hold substantial stakes. L&T also hold more than 4 per cent stake in the company and there have been reports of its interest in acquiring Satyam.
Peers such as Infosys, which had categorically said they would not touch the "tainted firm" have expressed confidence in the new board. They have also empathetically said that Satyam must get a fair chance to get out of this mess.
Mohandas Pai, human resources director, Infosys, has said that they it would not poach on Satyam's employees or clients. He believes the foremost job of the board would be to reassure and win back the confidence of the beleaguered firm's clients, employees and all other stake holders.
The choice of the new three-member board is an ideal combination. Deepak Parekh is the chairman of the country's largest home mortgage lender, HDFC, and his vast experience can help correcting irregularities in accounting and bringing back liquidity to the company.
Former president Nasscom, Kiran Karnik, brings in vast knowledge of the the IT sector, which will help in retaining employees as well as customers.
C Achuthan is a senior legal professional, a former member of the arkets regulator SEBI and a former presiding officer of the Securities Appellate Tribunal, who can be counted on to contribute in unravelling the accounting mess and function as a crucial link between the company and the investigating bodies.