December 26, 2008
An independent director on Satyam Computer's board is understood to have resigned days ahead of a scheduled meeting next week.
When contacted, a Satyam spokesperson declined to comment, while the independent member, Mangalam Srinivasan, could not be reached.
Earlier this month, Satyam announced the acquisition of two companies promoted by the family of its chief B Ramalinga Raju, but called off the deal within hours following investors' dissent over corporate governance issues.
Satyam had two independent directors on its board. Srinivasan is believed to have resigned for being a party to the controversial buyout of the two firms -- Maytas Properties and Maytas Infrastructure -- owned by Ramalinga Raju's sons.
The decision raised the issue of corporate governance and later led to shareholder activism, which forced the proposed deal to be aborted.
Although market sources said the other independent director may resign before or on the day of the board meeting, the same could not be confirmed either from the member or from the company.
PTI
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