Hyderabad, Dec 8 (PTI) Infosys' move to settle withmarkets regulator Sebi the alleged disclosure lapses involvinga severance pact have vindicated N R Narayana Murthy's stand,its former CFO T V Mohandas Pai said today, calling out thecompany to tender an apology to the co-founder.
He said it is good that the Bengaluru-headquarteredcompany has filed an application with Sebi to settle theissues around severance agreement with ex-CFO Rajiv Bansal.
"This vindicates fully Narayana Murthy's stand aboutcorporate governance issues regarding the (former) CFO(Bansal) and lack of disclosure," Pai told PTI.
The earlier Board tried to brush it under carpet, sayingit's an oversight, when clearly the process was not followed,"he added.
"The (former) CFO being negotiated to go (to resign) withvery high compensation is not an ordinary act. Now, thecompany has accepted that was wrong even though they deny iton paper...to clear this matter up. It augurs well for thecompany", he said.
The nomination and audit committee chairs should takeprimary responsibility for "this fiasco and the lack ofgovernance", Pai said.
He added: "Also, the company has abused Narayana Murthy.
The company should withdraw the letter issued to the StockExchange accusing Narayana Murthy of interfering when heclearly raised issues of corporate governance. The companyshould withdraw the letter and give an apology to NarayanaMurthy for abusing him and damaging his reputation."Some ex-directors of Infosys and commentators, who made"wrong allegations" against Murthy, should also apologise, hesaid.
"It's important for investors to stand up for goodcorporate governance, and not look the other way whencorporate governance norms are flouted", Pai said.
Infosys said on December 6, it has approached Sebi withan application to settle the issues arising out of allegeddisclosure lapses on the severance package paid to Bansal.
India's second-largest IT firm, in a regulatory filing tothe BSE, said the settlement application made to Sebi wasneither admission of guilt nor a denial.
It, however, did not disclose what it had proposed in thesettlement application.
"The settlement application process is based on anundertaking that the applicant will neither admit nor deny thefinding of fact or conclusion of law," Infosys said.
Settlement applications for violation of disclosure normstypically involve payment of a financial penalty to avoidpunishment in case allegations are proved right at a laterstage. PTI RS NPSA.
This is unedited, unformatted feed from the Press Trust of India wire.