Infosys Vishal Sikka resigns: Former Nasscom chief says promoters have no right to interfere after leaving
Reddy said: 'It is very sad to see a good CEO leaving a great company for avoidable reasons. The promoters have no locus standi (right to interfere or have say in the matter) once they leave the company.'
Hyderabad: Former Nasscom chairman BVR Mohan Reddy today said it was very "sad" to see a "good CEO" like Vishal Sikka stepping down as the CEO of Infosys, and added that promoters have no say after leaving a company.
The company said Sikka, the first non-founder CEO of Infosys, has abruptly resigned due to the "continuous assault" and "campaign" by founder and ex-chairman NR Narayana Murthy.
Reacting to this, Murthy said he is not seeking "any money, position for children, or power", while expressing anguish over the board's allegations that his "continuous assault" led to Sikka's exit.
Reddy said: "It is very sad to see a good CEO leaving a great company for avoidable reasons. The promoters have no locus standi (right to interfere or have say in the matter) once they leave the company."
If something similar had happened in a western country, shareholders would file class action suits against the company, said Reddy, founder and executive chairman of Cyient.
"Even assuming that the 12.5 percent create trouble, who suffers is the other 87.5 percent," he said.
As of June 2017, the founders of Infosys are holding 12.75 percent shares in the company.
Sikka resigned amid heightened acrimony between the board and the high-profile founders led by Murthy.
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The steep fall in the Infosys was also instrumental in sending the 30-share benchmark index down by 270.78 points at 31,524.68
Why did Infosys board, staffed with eminent persons with known corporate background, not take up cudgels on Vishal Sikka’s behalf all this while if it believed he is right?
As Infosys battle escalates, Ravi Venkatesan meets Arun Jaitley, Narayana Murthy sets up analyst call
Ravi Venkatesan is believed to have apprised Arun Jaitley of the developments at Infosys; Narayana Murthy is likely to clarify his part to analysts