The Hindu Business Line : ‘Form new co to save Satyam biz, staff’

Mumbai, Jan. 13 The Government should establish a new company to which could be shifted the business and employees of Satyam Computer, according to Mr H.P. Ranina, a well known lawyer.

Due to high legal fees and heavy penalties that Satyam may face, all its revenues will be eaten up if a separate company is not formed, said Mr Ranina, addressing a public meeting organised by the Investors’ Grievances Forum here on Tuesday.

“Let Satyam remain a company with fixed assets, then the liability will be restricted to those assets only. This is the only way Satyam can survive,” said Mr Ranina. “Future revenues have to be protected and these revenues shouldn’t be subjected to the liabilities of Satyam.”

This would protect the business of Satyam as well as take care of its human capital, which is precious and should be moved out too, said the lawyer. “Fighting law suits in America will be a very costly affair. The legal fees itself will kill the company,” he said.

Another suggestion was that a truly independent director should be appointed by SEBI, at least for the listed companies, and the CFO should also be appointed with SEBI’s consent.

Mr Kirit Somaiya, President of Investors’ Grievances Forum, along with some of the Satyam shareholders filed a petition at Mumbai High Court on Tuesday drawing the attention of the court towards the failure or connivance of the auditor and of the regulatory bodies.

Mr Somaiya also called for an immediate audit of all companies audited by Satyam’s auditor.

The petitioners prayed for investigation of all transactions in Satyam shares on January 7, as transactions of the previous three months. “All the transactions of the promoters’ group companies as well as transactions undertaken through participatory notes, and through the Mauritius route, need to be investigated in detail,” said the petition.

IGF also prayed for freezing of personal assets of the directors of Satyam.

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‘Form new co to save Satyam biz, staff’