Satyam Computer Services' board to be replaced

By Lisa Kerner

Charlotte, N.C., Jan. 9 - The board of directors of Satyam Computer Services Ltd. will be replaced by government nominees, it was announced on Friday.

The Company Law Board, Government of India, will appoint 10 nominees to replace current board members, Satyam said.

Interim chief executive officer Ram Mynampati is seeking recommendations for potential nominees from the Securities and Exchange Board of India; the Company Law Board; the IT Secretary, Government of Andhra Pradesh; Nasscom; and the Confederation of Indian Industry.

According to Satyam, the government's action will "ensure uninterrupted operations and restore the confidence of all employees, customers and shareholders."

The company has cancelled its Saturday board meeting.

It was previously announced that Satyam chairman and founder B. Ramalinga Raju unexpectedly resigned after admitting he overstated the company's cash and bank balances by $1 billion and inflated profits over the last several years.

Satyam is a business and information technology services company based in Hyderabad, India.

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