Wednesday, January 21, 2009

Satyam Computers

Ajay Shah SaysI am extremely uncomfortable with the fact that the government has appointed a board of directors. Let’s think deeply about this. The company is owned by shareholders, the government is an interloper, the government has no business in getting involved in the governance of the company.


What the government should have done is to collect the institutional shareholders ‑ 50% shares are held by institutional shareholders ‑ which can be easily put together in a meeting with a five days notice period. So, the government should have put institutional shareholders of the company into a room and told them you pick. The institutional shareholders should have put together a board of directors and that board should go around recruiting a management team. I think we are doing damage to the fundamental concepts of private property and the corporation by putting government into companies in this fashion”.

No comments: