Mahindra Satyam today moved an application before the Company Law Board (CLB) seeking its approval to hive off its Chennai-based animation division.
Mahindra Satyam counsel informed the court that the company's board had already approved the hive-off proposal on December 29, 2009.
He further informed that animation division that comes under Satyam BPO has only 0.2 per cent contribution to the company's networth. He further submitted that no material assets would be transferred.
The government official submitted before the CLB that they would look into certain aspects like there are no asset transfers from Mahindra Satyam or job losses in the company due to the hive-off.
Tech Mahindra, which acquired the then Satyam in 2009 after the CLB's approval, has a lock-in period of two years for transferring or hiving the assets of the company. However, if the transfer has been approved by the board of the company or shareholders, it can do so before the expiry of the lock-in period.
The CLB has listed the matter on February 2, 2010, for next hearing.