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Satyam to be stripped of corp governance award
 
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January 07, 2009 16:00 IST

Satyam Computer Services [Get Quote], in the eye of a storm for financial wrong doings, will be stripped off the Golden Peacock Award -- the very laurel it used for trumpeting its corporate governance norms when the controversy broke out.

"In wake of unfloding events which is most unfortunate, we have decided to take away the award from Satyam Computers. For this purpose the council of Institute of Directors (IOD) will meet within a day or two," IOD Director (Indian secretariat) Manoj Raut told PTI.

He said that IOD's council meeting would be attended by chairman of the Indian jury Justice P N Bhagwati, former Chief Justice of India.

It may be recalled that on December 30 last year, Satyam chairman B Ramalinga Raju had cited the award to highlight the company's strong corporate governance structure to justify the board's decision to bid for Maytas.

Satyam Computers was awarded the Golden Peacock Global Award for Excellence in Corporate Governance 2008 by IOD, and the firm was also the winner of the Golden Peacock Award for Excellence in Corporate Governance in 2002.

Raju had insisted that all required processes and procedures were followed for making the $1.6-billion bid 'while there was a spirited discussion among members, their vote to approve the motion was unanimous'.

Another institution, Ernst & Young, which had awarded Raju with the Entrepreneur of the Year Award in 2007, however, was tightlipped.

"The award is given by an independent jury and we are not in a position to comment," a spokesperson of the consulting firm said.

The Satyam chairman on Wednesday admitted manipulating the company's balance sheet.


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