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Last Updated : Aug 18, 2017 02:41 PM IST | Source: CNBC-TV18

Infosys conference call: Here are a few key takeaways from experts

Under the shadow of the year long promoter-management conflict, Vishal Sikka resigns as the Infosys top boss.

Under the shadow of the year long promoter-management conflict, Vishal Sikka resigns as the Infosys top boss.

Below are comments from experts after the conference call:

JN Gupta, Founder and MD, Stakeholders Empowerment Services & Former ED, Sebi 

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"I find it a very difficult situation for a simple reason - the founders just because of the weight of their reputation are trying to bulldoze their way.

With a miniscule shareholding they are putting other 90 percent or 85 percent of shareholders to their hostage."

Pramod Gubbi, Head-Equities, Ambit Capital

"We just had our buy recommendation lifted just three days ago. Simply from governance standpoint we thought that the board was coming up short in terms of disclosure levels. Obviously we are not privy to what the motives are or we simply do not want to comment on that but for a company that has been perhaps at the highest levels of governance since its inception, we thought it was in everybody's best interest that any details of the investigation results should be disclosed in the public domain or at least to the shareholders in general to allay any sort of concerns or at least put to rest any darts that there might be something untoward.

Despite our positive view on the fundamentals, the whole issue about lack of disclosures is creating this uncertainty among us as well as the investors."

Suresh Senapaty, Former CFO, Wipro

"The outcome is not something a surprise to us, it is pretty much expected to happen, one did not know when it will happen. If you go to the bottom of it, over the past few months, concerns were repeatedly being raised about corporate governance practices in terms of lack of transparency to shareholders in that company and these concerns were expressed by the people who are respected and practiced high quality corporate governance. So it was reiterated that the intent was not to target any individual but were made at the best interest of the company and the shareholders.

The current development, which is a resignation of Dr Sikka, does not necessarily address the primary issue raised but it is just a noise which further distracts from the core issue. To say that there is one voice which was objecting and there weren't enough other voices is perhaps undermining some of the valid reasons why there has been questions to be raised. It only means that the board has to come together, discuss with the stakeholders in a language, in a best persuasive manner in terms of how the issues are being handled well but this kind of an outcome which has come today is pretty unfortunate. I don't think it is going to close the issue but it is going to add fuel to fire."

Shriram Subramanian, Founder & MD, Ingovern

"A short while ago, the Infosys has put out a media release where again they have attacked NR Narayana Murthy. I think this is just going to get intense. At the end of the day, it is sad but there is misalignment between the board and one of the founders. For the first time probably Infosys is referring to Mr Murthy and not the founders as a collective. This has become a very personal battle now which is sad and unfortunate.

I don't think Vishal Sikka getting down is just the end of the story yet."

Jonathan Schiessl, Ashburton

"I think it is very-very negative for investors and unfortunately for shareholders what has been doing on. The reality is that the board and the company will find it extremely difficult in my opinion to get decent candidate to step-up into the shoes of the CEO."

For entire discussion, watch accompanying videos.
First Published on Aug 18, 2017 02:28 pm
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