Satyam Computers Corporate Governance Fiasco (C): CEO Confesses, Company Collapses
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Code : GOV0035
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Region : India |
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Dawn of the New Year: Daunting Challenges Ahead of Satyam The year 2009 was declared to be a celebration year at global level for twomain reasons: the 200th birth anniversary of an English naturalist Charles Robert Darwin who propounded the theory of evolution of species and the 150th anniversary of the publication of his book The Origin of Species. As it was declared to be the year of celebration for the global scientists, it was just opposite for the internationally reputed fourth-largest IT services provider in India. Compounded by the economic slowdown and blues caused by bitter controversies, Satyam entered into the new year... Experiments with Truth: Poster Boy to Pester Boy Satyam had been getting deeper and deeper into the turmoil following a series of events since the announcement of Satyam-Maytas deal. Amid rumours and gossips of change of CEO and the board and takeover of Satyam, the Unpaid’s legal case came up as another crucial issue to deal with. Fearing the Upaid legal proceedings under US laws, surrounded by the storm of acquiring family-owned real estate firms, emasculated by the mounting pressures from all the corners and having lost confidence of investors, Ramalinga Raju submitted his resignation letter to the board on January 7th 2009 and informed the same to the Chairman of SEBI and other stock exchanges in India and abroad... Can Confession Help Ramalinga Raju? Why did Mr B. Ramalinga Raju, founder of Satyam Computer Services, choose to confess? Perhaps, he might have thought that it would not be long before his misdeeds were exposed. The other aspect the legal experts are considering iswhether it would help escapewith lesser penalties.Alot of thinking went into the decision to make a confession when things came to a pass —either he had to disclose or the possible valuation by suitors would have revealed it any way. Of all the options, confession was zeroed in on... |
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