Former CFO Balakrishnan wants certain members out of Infosys board

Published On: 09, Dec 2017 | Source:

Former Chief Financial Officer V Balakrishnan on Satruday sought the discontinuance of certain board members in light of the company filing a settlement plea with Securities and Exchange Board of India (Sebi) on corporate governance lapses relating to severance payment to its former CFO Rajiv Bansal.

"I think the continuation of certain board members like the erstwhile co-chairman (Ravi Venkatesan) and the audit committee chairman (Roopa Kudva) looks highly untenable in light of the current development of the company filing consent agreement with over Bansal's severance payment case," Balakrishnan told PTI here.

In view of the current development it is all the more important to restructure the board and fill it with people of high integrity and stature, he added.

The scathing communication to the stock exchanges blaming Co-Founder N R for all of the board's lapses was 'unprecedented,' Balakrishnan, who is known supporter of Murthy, said.

He also said all along, the board had consistently denied any wrong-doing and in fact blamed Murthy terming his questioning as a "misguided campaign."

Earlier, Murthy had accused and its board of failing in disclosure and corporate governance norms.

The board of owes an apology to Murthy and should take steps to retract that statement, he said.

"Murthy always stood for high level of corporate governance and only acted in the interest of protecting a great institution like Infosys," Balakrishnan said.

On December 6, said it had approached with an application to settle the issues arising out of alleged disclosure lapses on the severance package paid to Bansal.

India's second-largest IT firm, in a regulatory filing to the BSE, had said the settlement application made to was neither admission of guilt nor a denial.

It, however, did not disclose what it had proposed in the settlement application.

Infosys, under new Chairman Nandan Nilekani, moved the application as part of its attempt to settle the issues that had cropped up during the tenure of former CEO Vishal Sikka

Murthy had first raised the issue of failure in corporate governance at soon after the company gave a huge severance pay to Bansal after the acquisition of Israeli technology firm Panaya.

The founder continued to put pressure on to come clean, including seeking the resignation of then Chairman Seshasayee.