NEW DELHI: The government on Friday said it has secured Company Law Board's permission to supercede the Satyam Computers' board.
The CLB has allowed the government to restrain the present directors of the company and appoint a new board with 10 nominees.
"The current Board ceases to exist and there would not be any meeting tomorrow," Corporate Affairs Minister Prem Chand Gupta said.
Directors will be people of repute who will be shortlisted soon, Gupta added.
The new board will meet in next seven days, he said.
This comes even as the company faces severe liquidity problems.
Meanwhile, Andhra police is initiating action against the Satyam promoter and former chairman Ramalinga Raju.
Satyam scrip closed at Rs 23.85 on the Bombay Stock Exchange, down about 40% from its previous close. The scrip hit an intra-day low of Rs 11.50 on the exchange. Gupta said that the new board would decide on the new management for Satyam Computer and there was no decision to take over the management as yet.