- Very bad news about Satyam w.r.t. the World Bank
- Very bad news about the CEO of Maytas Infra
- Some good news for Satyam w.r.t. Sebi.
- Raju Chitale and T. R. Prasad in Business Standard on Satyam.
- An editorial in Business Standard says that the managers of Satyam should quit.
The latest news has amplified the focus on the question: will the chairman of the board, B. Ramalinga Raju, resign along with other key staffpersons? This question will have a significant impact upon the conduct of managers of Indian firms in the future. This question will clearly turn on how the owners of Satyam think. Of these, the institutional investors (particularly foreigners) matter the most. The extent to which the Indian legal environment gives them voice is also an important question. As I wrote in my blog post Crisis in Satyam on Sunday:
What would you do with a manager who lost Rs.9,560 crore? I suspect that in most well governed countries, the manager would get sacked. It would be interesting to see (a) What the institutional investors of Satyam think, and (b) How the Indian legal environment deals with this.