CLB clears decks for Government’s nominees on both Maytas boards

The Company Law Board (CLB) has permitted the nomination of additional government's directors for the boards of Maytas Properties Ltd and Maytas Infra Ltd, the companies run by family members of tainted Satyam's founder chief, B Ramalinga Raju, the main accused in the largest ever corporate auditing fraud in India.

Past president of the Institute of Chartered Accountants of India (ICAI), Ved Jain and leading corporate lawyer, O P Vaish have been introduced in the board of Maytas Infra besides three existing directors in the company. The recent decision to nominate directors in the respective boards of firms would help to establish a quorum of three members and allow conflict free decisions in future.

Corporate Affairs Minister, Prem Chand Gupta said, "The government will shortly appoint two additional directors, including the chairman." He said that nomination of new director would help to clean the tainted image of companies and bring transparency in the system, much needed to restore the confidence of investors.

Mr. Gupta further said, "The CLB order is an interim arrangement; we have sufficient control, as no decision can be taken without an affirmative vote from the government nominees. The government has the option to move CLB again, added Gupta."

The government's nominees are also provided with immunity against criminal or punitive actions and free to avail co-operations from banks and financial institutions. The boards have been asked to submit report to both government and CLB on monthly basis.

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