The management overhaul at Mahindra Satyam has now reached its board level. A significant

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number of the government-appointed directors on the board of the company may step down once Mahindra group’s open offer to purchase an additional 20 per cent in the company is concluded.

Kiran Karnik, the government-appointed chairman of Mahindra Satyam and C Achuthan, ex-chairman, Securities Appellate Tribunal, seem set to resign.

Kiran Karnik, who is currently travelling abroad said in a telephonic interview, “I will be out of Satyam in few weeks’ time. This will be decided by the government.” C Achuthan, another director on the board of Satyam said, “The mandate given to us was to be on board until the company was stabilised. It may happen after the open offer is closed.

“After the Company Law Board passes the order relieving some directors, one or two government nominees may remain on the board to clear all processes, which CLB has to do with Satyam,” he added.

A source close to T N Manoharan said that he too might move out of the Satyam board. Manoharan, member, ICAI, said, “I am not aware of the rules. The decision of the government nominees will be taken in the next board meeting in July.”

Earlier this week Anand Mahindra, chairman, Tech Mahindra had said, “It’s not our prerogative how many government nominees will be retained on the Mahindra Satyam board. We would welcome continuity and would be happy to have them continue.” Industry experts feel that Mahindra, who has not yet joined the Mahindra Satyam board, may take over as chairman once Karnik steps down. However, no confirmation of this was available.

Tech Mahindra’s open offer of Rs 58 a share to acquire additional 20 per cent of shares is expected to close on July 1. .

HDFC Bank chairman Deepak Parekh is, however, expected to continue on the company’s board. When contacted by Financial Chronicle, Parekh said, “How would I know anything? It is a decision to be taken by the government. I cannot do anything about this.”

Experts feel that the other two government appointed directors — SB Mainak, nominee of LIC, and Tarun Das, chief mentor, CII — may continue on the board of Mahindra Satyam. Das’ connections with the central government would help the new board cope with the on-going investigations. LIC holds 2.81 per cent in Mahindra Satyam as of end March 2009.

(With inputs from Sharang Limaye)