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Narayana Murthy may pursue questions on Infosys governance

The Bengaluru-headquartered company yesterday absolved itself of any wrongdoing vis-a-vis the Panaya deal

Press Trust of India  |  Hyderabad 

Narayana Murthy
N R Narayana Murthy, co-Founder, Infosys

Co-Founder N R Narayana may pursue his questions on "poor governance" at the company and take up the issue with Chairman Nandan Nilekani, sources close to said. "I spoke to Murthy, he has gone abroad yesterday. He said he will come back and talk to Nandan.

He said he is not going to keep quiet," said an ex-official, who is on the same page with on the issues raised by him. The Bengaluru-headquartered company yesterday absolved itself of any wrongdoing vis-a-vis the Panaya deal, as well as severance pay to its former chief financial officer, in what is seen as a snub to Another former official of Infosys, on condition of anonymity, said the board was anyways not expected to "publicly admit to wrongdoing". "If the board comes out and says they have done something wrong, there will be class-action lawsuit on the company; so they have to say nothing wrong to protect the company," the official said. So, the clean chit given to the company is being seen as some kind of a balancing act by Nilekani to "protect" the company, the official added. The official noted that when former CFO Rajiv Bansal's severance pay issue was raised, the company "stopped payment" and also claimed that "almost all members of the M&A team were told to go" when questions were asked about the Panaya deal. He added that replaced Rupa Kudva as chairperson of the audit committee with independent director D Sundaram. "So, they have taken some internal action but they can't publicly admit there was a mistake," the official claimed. yesterday expressed disappointment that none of the questions raised by him on "poor governance" had been answered by the company's board with transparency. His comments came after the board under chairman Nilekani gave a clean chit to the company's USD 200 million Panaya acquisition. The board also refused to put out additional details of the probe, as had been demanded by said he stood by every question on "poor governance" raised in his speech, dated August 29, 2017, to investors. He asserted that the core question still remained on "how and why the board approved an unusual and unprecedented severance payment agreement of 1,000 per cent (of the standard employment contracts) to the former CFO...".

First Published: Thu, October 26 2017. 01:59 IST