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| Govt-appointed directors work for free to revive Maytas Infra |
| Press Trust of India / New Delhi Aug 31, 2009, 18:19 IST |
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At a time when professionals charge hefty sitting fees, the government-appointed directors who worked long-hours to revive crisis-hit Maytas Infra worked for free.
"We have done our job. It was a public service for us. Whatever the government has assigned us, we have done it," said K Ramalingam, one of the four nominee directors appointed by the government to bailout the company.
The other three nominee directors are former ICAI president Ved Jain, noted corporate lawyer O P Vaish, Assocham past president Anil K Aggarwal. All of them, experts in their own fields, worked on an honorary basis.
"We the government appointed directors did not charged any sitting fee from the company either to attend its board meeting or any other functions," said Vaish.
Adding to it, he said,"its only once in a while in your life, you get to do such work."
Consenting to it Ramalingam said it was a public service for them and they never asked for any money for it.
As per the Companies Act 1956, directors could be paid a maximum of Rs 20,000 per sitting of the board or one per cent of the total profit of the company could be distributed among the independent directors. Meanwhile, Aggarwal said, "It was a challenging task for us. In US Enron collapsed, but Satyam its Indian edition was saved due to a new concept of public private partnership."
He added that it could be possible due the positive attitude of the government and its appointed nominees.
"Rather than finding faults, we stressed positive attitude. Rather than playing a role of investigator, we spend out time in finding ills of Maytas," said Aggarwal.
"Maytas has made a loss of Rs 490 crore in the quarter of March 2009. Now in the first quarter of June 2009 loss is Rs 15 crore only inclusive of all depreciations and the company has an operating profit of Rs 5 crore," said Aggarwal.
Following today's CLB's order the government will recall two of its nominees from Maytas Infra, while the others would continue.
Earlier, in pursuance of a CLB order, the government had appointed four nominee directors on Maytas board to revive the company that was hit by an accounting scam in Raju-founded Satyam Computer.
Meanwhile, the CLB has also directed Teja Raju, son of Satyam Computer Services' tainted-founder B Ramalinga Raju and Maytas promoter-director hitherto to quit the board along with another director B Narasimha Rao.
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