CLB grants immunity to new Satyam board

Allowing newly-appointed board members of crisis-ridden Satyam Computer to act fearlessly, the Company Law Board (CLB) today granted immunity to them from any action by the government agencies.

"To ensure that the present board of directors discharge its function without any apprehension of being subjected to criminal, civil or punitive action, I direct that none of the state or central government agencies shall... Initiate any action against the present directors", the CLB Chairman S Balasubramanian said in an order.

The order, passed on an application moved by the government, also exempted the present Satyam directors from any action by the provident fund authorities.

"I restrain the PF authorities from initiating any action against the present directors of the company without the leave of this board," he added while passing an order in the case.

The new board has also been authorised by the CLB to raise finance in form of loan or mortgage by pledging movable and immovable assets including securities.

The government earlier had appointed a six-member board to salvage the scam-tainted IT firm.