Former Nasscom President and member of the newly-formed Satyam board Kiran Karnik has resigned from the directorship of the governing board of Emergency Management and Research Institute (EMRI), which is a not-for-profit organisation, founded by former Satyam Chairman B Ramalinga Raju and his family. It began operations in 2005 with 30 ambulances deployed over 50 towns in Andhra Pradesh.
Deepak Parekh, the other government-appointed board member, is also an independent director on the board of NYSE-listed BPO, WNS Global.
"At the moment he is still on our board. Discussions are on and all options are being evaluated by the company," said a company spokesperson.
A senior company official, on condition of anonymity, however, noted that while there was no major conflict of interest as Satyam's BPO operations are very small, in the light of the corporate governance issue and morally too both the parties are discussing an amicable decision.
Meanwhile, Chief Executive Officer of EMRI Venkat Chengavalli said, Karnik -- who had joined the board in April last year -- had tendered his resignation on January 9.
Ramalinga Raju had already resigned from the chairmanship on Jan 7, said Chengavalli. Meanwhile, sources said former President of India APJ Abdul Kalam is also likely to put in his papers today. Kalam had joined the board as Chairman Emeritus.
Karnik is also an independent director on the board of Nasdaq-listed BPO EXL Service (Incidentally, Satyam has a BPO too which could raise a conflict of interests). Besides, Aujas Networks, a provider of digital security services, had taken him on their board as a non-executive chairman. Incidentally, Aujas in an IDG Ventures invested company, and Karnik is also in the Advisory Board of IDG Ventures.
When asked if Karnik would resign from their board, Sudhir Sethi, founder, chairman and managing director IDG Ventures India Advisors, said: "IDG Ventures is a Venture investor investing small amounts of $1 million to $5 million in start-up companies. Under any condition, we will not be potentially involved with Satyam. Hence there is no conflict for Karnik on remaining on the Advisory Board of IDG Ventures."