Infosys says engaging with shareholders on governance standards

New Delhi: Infosys on Friday said it is engaging with shareholders on the future course of action to ensure that high governance standards are maintained, as it attempts to put behind months of acrimony between founders and former Board members over allegations of lapses. Founders, led by NR Narayana Murthy, had demanded Board re-constitution pointing to a variety of reasons, including whistle-blower complaints of irregularities with Infosys’ $200 million Panaya acquisition and severance pay to former executives. [caption id=“attachment_3998707” align=“alignleft” width=“380”]  Reuters[/caption] On 24 August, the then chairman R Seshasayee quit and co-founder Nandan Nilekani was named non-executive Chairman. “As announced on 25 August, 2017, the company has started engaging in broad-based shareholder consultations to determine what further actions, if any, the company can take to ensure that it continues to adhere to high governance standards,” Infosys said in a BSE filing. It added that during such consultations, “no material unpublished price sensitive information or financial updates will be provided”. Earlier this week, Murthy had said his concerns with the previous board were poor governance, ex-CFO being paid large severance as ‘hush- money’ and alleged irregularities in Panaya acquisition. Seshasayee, however, hit out at Murthy today for carrying out “personal attacks” and making “false and slanderous accusations” against him, saying he was unable to understand the motivation for the persistent vendetta. On 18 August, Infosys CEO Vishal Sikka had quit from his position citing slander. The Infosys Board – which was headed by Seshasayee at that time – then accused Murthy of running a “misguided” campaign and held him responsible for Sikka’s resignation. A week later on 24 August, Seshasayee as well as three other directors quit the Board, giving into Murthy’s demand for Seshasayee and other Board members to resign.