Stakeholders lobby for a seat on the Satyam board

MUMBAI: Members of various shareholder associations, accounting bodies and management experts are flocking to Delhi to lobby for a seat on the Satyam board.

According to sources, the government is considering to expand the newly-set board to a ten-member working group, with adequate representation from stakeholders and professional bodies.

The final list (of board members) is expected to be announced on Monday late evening or tomorrow morning, sources said.

"Members are lobbying hard to get a seat on the Satyam board. Recommendations are coming in from Union Ministers, highly-placed bureaucrats and high-flying entrepreneurs to induct their nominees," said Pradeep Bhavnani, president, National Association of Small Investors (NASI).

Mr Bhavnani, who currently holds 1.12% in Satyam Computers, is also aspiring for a seat on the Satyam Board.

"Am buying more Satyam shares today; this will take my shareholding to 5%. If they are not offering me a membership, I'll move court," Mr Bhavnani said.

Kirit Somaiya of Investor Grievances Forum has requested the High Court to intervene in the board constitution process. "The High Court should look into the whole process. The court should see to it that shareholders are well-represented in the new board. The honourable court should also book exchanges and the regulator for not being able to prevent such a scam," Mr Somaiya said.

The newly-constituted three-member board of Satyam will meet today to discuss ways to get the company back on track. In its first meeting, the board is likely to elect Deepak Parekh as its chairman. It is learnt that the government has already sounded the members about Parekh as chairman. The other members will be appointed by the government with the consultation of the chairman and other appointed board members.