2009 (1) TMI 890

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 3 read with Section 397/398 to regulate the affairs of a company during the pendency of a proceedings under these sections. To examine whether, the petitioner has made out a case for grant of interim reliefs as sought for, that too, ex parte, it is essential to narrate the facts alleged in the petition. 2. The facts alleged are : Satyam Computer Services Limited is a listed company having about 3 lakh shareholders. The company was promoted by the 2nd respondent Shri Ramalinga Raju. It has over 53,000 employees and it is the 4th largest IT company in India having clients in over 60 other countries. It has received a number of awards for best corporate governance. But the reputation and credibility of the company suffered drastically in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d the regulatory mechanism in the eyes of the world. Therefore, the Central Government has formed the opinion that the interests of the company will not be safe in the hands of the present board of directors and as such they should be restrained from discharging any function as directors and that the Central Government should be authorized to appoint 10 directors. I have considered the material place in the petition and also heard the submissions of Shri Sanjay Shorey. From the material placed before me, I am prima facie convinced that the petitioner has sufficient grounds to invoke the provisions of Sections 388B/397/398 and 408 of the Act. The promoter group headed by Shri Ramalinga Raju presently holds less than 4 per cent shares in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cept of corporate governance practiced in India. The public interest at large is also at stake. The need of the hour is to create confidence in the minds of all those connected with the company in any capacity and also to assure that regulatory/judicial mechanism in India is alive and active to take immediate and positive steps in case of needs. The present state of affairs of the company is such, that there could not be a better case, wherein, this Board, in exercise of its powers under Sections 388C/403 of the Act, is obligated under the law to regulate the affairs of the company on an urgent basis. Therefore, I am fully convinced that in the interests of the members, employees, customers of the company and also in the larger public inter .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X