Company Law Board provides immunity to govt-appointed Satyam board

HYDERABAD: The company law board has passed an order providing immunity to six government appointed board members and other new appointees of Satyam Computer Services from all legal action relating to the Rs 7,000 crore fraud.

"The CLB's order will help us take a decision on the appointment of a new chief executive officer and chief financial officer for Satyam as they will also get immunity from any legal action. We will act like court officials discharging public service,'' said C Achutan, Member of Satyam Board.

The disgraced founder of satyam B Ramalinga Raju on January 7 confessed to cooking the books of the software firm.

Satyam is now facing two class action law suits in the US. These were filed by two Two US-based law firms -- Izard Nobel LLP and Vianale & Vianale LLP -- on behalf of shareholders who have American Depository Receipts (ADRs) of the company.

A 'class action' is a civil suit brought by one or more people on behalf of themselves and others who are similarly situated.

Besides, UK-based mobile services payment company U-paid is also fighting a $1 billion legal battle with Satyam.

The Satyam scam is being investigated by several agencies including market regulator Securities and Exchange Board of India (Sebi), Serious Fraud Investigation Office (SFIO), Registrar of Companies and the Andhra Pradesh Crime Investigation Department (CID).