Infosys extends gain post clarification on alleged governance lapses

The stock moved higher by 2% to Rs 966, trading at day's highest level on the BSE.

Infosys has moved higher by 2% to Rs 966, trading at day’s highest level on the BSE at 02:18 pm, after the company denied any governance lapses alleged by some sections of the media in reports that have appeared in the last few days on purported rifts among the Founders, the Board and the Management.

In past two trading sessions, the stock outperformed the market by gaining 3% as compared to 0.29% rise in the S&P BSE Sensex.  From its recent low of Rs 917 on February 2, it was up 5% against 0.52% gain in the benchmark index.

“The issues highlighted by the media - CEO compensation, appointment of certain Independent Directors, and severance pay relating to former employees - are several months old, on which the Company's position has been repeatedly explained. While there could be differences in views on these matters, they have been overwhelmingly approved by shareholders, wherever required, and on which due disclosures have been made,” Infosys said in a statement on Friday.

While the Board appreciates and respects inputs from the Founders, it is committed to fulfilling its fiduciary responsibility to act independently and in the overall interest of the shareholders. To formalize this process, the Board has recently appointed Cyril Amarchand Mangaldas, corporate governance experts, to receive from Promoters and other key stakeholders various inputs, evaluate them and make recommendations to the Board. This will be an ongoing process for some time, it added.

The Company will take every step to uphold the standards of governance processes, of which the Company has always been an exemplar, Infosys said.

There have been several reports in media that the Board of Infosys is meeting in next few days to consider Rs 12,000 crore share buyback.

However, the company clarified the report by saying its policy is not to comment on rumors or speculations.