Whistleblower slams Infy board, again


The anonymous whistleblower, who had previously raised charges of lapses in corporate governance by the Infosys board under its former chairman R Seshasayee, has written a fresh letter to market regulators Sebi and the US SEC demanding a probe against the current board led by its chairman Nandan Nilekani for failing to uphold the company’s corporate governance practices that became the gold standard for the industry.

“I think the current board led by Nandan Nilekani is a huge disappointment. He has forgotten the core principles of Infosys and failed to uphold the highest traditions of corporate governance practised by Infosys earlier…In doing this, he is clearly shortchanging the investors of Infosys,” the whistleblower said in an email that was shared with TOI.

The whistleblower has questioned the timing of the company’s latest disclosure on agreements for mutual release of claims that the firm entered into with three former board members — Seshasayee, Jeffrey Lehman and John Etchemendy — after they quit Infosys in August last year. The whistleblower has also alleged that the company has signed the claim release agreements with the former directors because it found certain wrongdoings in the investigation reports that has so far not been made public. “The release of which will be damning indication on the company and those directors,” the email said. The whistleblower has also raised the issue as to why such an agreement was not signed with former board member Ravi Venkatesan who quit the board recently. When TOI reached out to Infosys, the company declined to comment on the matter.

Shriram Subramanian, founder and MD of proxy advisory firm InGovern Research Services, said signing a mutual release and a non-disparagement agreement is a standard practice in the US.

Link: Times of India- May 24, 2018