The Professor of Corporate Governance

Recently, the board of one of the major Indian software company Satyam , had agreed to acquire two companies for USD 1.6B.

Nothing wrong it seems. But these two companies, which are in construction sector, were floated by the relatives of the CEO of Satyam. And these companies are lately doing bad, apparently!

Although the board cleared the acquisition, it is the shareholders who had better sense and made a huge fuss which ultimately prevented the CEO from taking the final step.

Interestingly, one of the eminent professors of Corporate Governance from one of the best B-Schools in the world is an independent Director of Satyam. In India, the job of the independent directors are specifically to prevent such an egregious violation of corporate governance.

To know briefly on the independent director, the remuneration and the deal, you can click here

https://churumuri.wordpress.com/2008/12/ ... ss-school/