Satyam's new board granted immunity against prosecution

30 January 2009

The Company Law Board (CLB) yesterday granted the six-member Satyam board immunity from criminal, civil or punitive action. The CLB also invested the board with wide-ranging powers including raising finance in the form of loan or mortgage by pledging movable or immovable assets including securities.

The order grants the board immunity against any action by provident fund authorities. According the CLB it has restrained the provident fund authorities from initiating any action against the present director without permission of the board.

Acting on an application moved by the central government, CLB chairman S Balasubramanian said the order has been passed to enable the present board of directors to discharge its duties without apprehension of action from central or state government agencies.

The CLB further clarified that since the board has been appointed in the name and on behalf or the CLB, the board members are like court officers and every state and central government entity is duty bound to assist and support them in their endeavours, particulalry since they have joined the board in the public cause.

However, the CLB chairman said that the board of directors will cooperate with the agencies concerned as necessary whenever any documents are required by investigators.

Meanwhile, at least seven companies have shown interest in taking over Satyam even as the company's investment bankers are assessing which of them would be the best possible match for it.