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Centre disbands Satyam board

NEW DELHI: The Centre on Friday disbanded the board of Satyam Computer Services, cancelled its meeting scheduled for Saturday and announced that a 10-member board of new directors would be nominated soon.

The erstwhile board of Satyam was to meet in Hyderabad on January 10 to discuss the crisis in the wake of the Rs. 7,100-crore accounting fraud, which its founder-chairman B. Ramalinga Raju owned up to before quitting his post.

Five other directors of Satyam had also put in their papers, leaving the strength of the board at just three.

Corporate Affairs Minister Prem Chand Gupta said: “The current board ceases to exist and there would not be any meeting tomorrow ... the new board will meet in the next seven days.”

The new board, Mr. Gupta said, would decide on the new management for Satyam.