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Our Bureau

Hyderabad, Dec. 26 Satyam Computer Services has received yet another setback with Dr Mangalam Srinivasan, an independent director on the board, deciding to quit her post, taking moral responsibility for not casting a dissent vote against the proposal to acquire Maytas firms.

However, at least two independent directors Business Line spoken to have said that they are not contemplating on taking a similar action for now. Prof. V.S. Raju, former director of IIT (Delhi), and Dr Mendu Rammohan Rao, Dean of Indian School of Business, have said that they would attend the December 29 Board meeting.

Dr Rammohan Rao, the independent director that chaired the December 16 Board meeting, has said, “I am not taking any actions at the moment. At the next Board meeting there will be discussions, clarifications will be sought, then I will take it forward.”

Prof. Raju felt that he would continue to stay on the Board. “I’m not contemplating to resign. I feel that it is not called for. I think that we have done the right thing in the interests of the company,” Mr Raju told Business Line.

When called on Friday afternoon to seek his stand on continuing on the Board, he said, “I’m to attend the board meeting (scheduled for December 29) and discuss all the relevant issues. It is time to look forward to get the company’s image back on track and get the best for the shareholder value.”

Meanwhile, a Satyam spokesperson said that the company has received the resignation of Dr Mangalam Srinivasan on Thursday. Asked whether any other independent director reacted similarly, she replied in the negative.

Dr Mangalam Srinivasan sent a letter to the company, informing her decision to quit the post she has been holding for 17 years.

“While I raised many of the issues related to the procedures and had expressed my reservations during the deliberations, I had not cast a dissenting vote against the acquisition of Maytas. I take the moral responsibility,” she said in the letter.

E-mails and phone calls to other independent directors Mr T.R. Prasad, Mr Vinod K. Dham and Dr Krishna G. Palepu have not yielded any response till evening.

Meanwhile, Mr Abani Roy, a Revolutionary Socialist Party (RSP) MP, has asked the Prime Minister, Dr Manmohan Singh, to remove Mr Mendu Rammohan Rao, the Dean of Indian School of Business, from all selection committees, including those that select Deputy Governor of RBI, Chairman of SEBI and Chairman of TRAI.

He told this correspondent that Mr Rao, who headed the board meeting of Satyam that took the controversial decision to invest in companies controlled by Mr B. Ramlinga Raju’s family, had not answered several questions on the issue.

With the World Bank turning down Satyam’s demand for an apology for “harming its interests”, the Hyderabad-based software services company is “evaluating various options” to take appropriate action.

When asked whether it includes a legal course, a Satyam spokesperson has said, “We can tell you that we are looking at various options.”

More Stories on : Software | Buyback | Satyam Computer Services Ltd

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