The Hindu Business Line : Prof C.K. Prahlad quits HMRI

Hyderabad, Jan. 10 The shocking happenings at Satyam Computer Services have started taking a toll on the governing boards of several organisations in Hyderabad.

Prof C.K. Prahlad, globally acknowledged management guru, and Prof Srinath Reddy, a leading cardiologist, have quit from the Board of HMRI (Healthcare Management & Research Institute), with which the promoters of Satyam are associated.

HMRI, which runs the popular ‘104’ service has an eight-member Board of Governors with Mr B. Ramalinga Raju as Chairman. Mr Raju has also expressed his desire to step down, post his ignominious fall from Satyam Computer on grounds of financial fraud.

Mr Ramalinga Raju, who is now under the scanner of police and regulatory bodies, has quit from the Board of Trustees of the LV Prasad Eye Institute (LVPEI) as well. The high-profile Board consists of Dr K. Anji Reddy of Dr Reddy’s Labs, Prof P. Rama Rao (former DST Secretary), Mr T.R. Prasad (former Union Cabinet Secretary), Mr G. Mallikarjuna Rao (Chairman of GMR Group), and Prof M. Rammohan Rao (former Dean ISB), among others.

When asked by Business Line, Mr T.R. Prasad said “I have expressed my desire to quit the Board”. Dr Rammohan Rao is understood to have expressed his desire to step down as well.

Mr Raju has also conveyed his desire to step down from the position of Chairman of EMRI (Emergency Medical and Research Institute). Both EMRI and HMRI have a 5 per cent fund commitment from Mr Raju & Associates, the original promoters of Satyam Computer Services.

Interestingly, while former President Mr A.P.J. Abdul Kalam is the emeritus Chairman of the EMRI Board, Prof Krishna G. Palepu, a Harvard Business School Professor (who quit Satyam Board), Mr Kiran Karnik (former Nasscom Chief), Mr K.V. Kamath (ICICI Chairman) etc are members.

The Satyam episode seems to have turned the heat on to the role of the independent directors on corporate and institutional boards.

More Stories on : People | Society & Development | Satyam Computer Services Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page