Corporate Governance & Business Ethics Case Study

Satyam Computers Corporate Governance Fiasco (A): Siblings Are Dearer Than Shareholders?

Abstract:
This case study, first in the series, is a curtain raiser to Satyam Computers’ corporate governance fiasco. While capturing the first three days’ (December 16th 2008 – December 18th 2008) events, this case study chronicles the events as they unfolded. What started as a routine business (board’s) affair, ended up in India’s Enron like situation. This case enables an interesting discussion on: (a) the role of independent directors, (b) the role of shareholder activism, (c) the larger fiduciary role of Board of Directors and (d) the moral and ethical role of founder-CEO.

Pedagogical Objectives:

The case attempts to achieve the following pedagogical objectives
• To discuss the growth and success story of Satyam Computer Services since its beginning as a small information technology (IT) firm to become the fourth-largest IT services provider in India
• To debate the role of Maytas twins in the corporate governance fiasco at Satyam Computer Services
• To analyse the factors that forced Satyam Computer Services into the current crisis.

Keywords :  Ramalinga Raju , Corporate Governance, Satyam Computer Services, Shareholder Activism, Satyam, Maytas, Role of Independent Directors, Corporate Frauds in India, Mergers and Acquisitions, Business Diversification, Maytas Infra, Maytas Properties, Investors Activism