The Company Law Board (CLB) on Friday reserved its orders on government's petition for superseding the board of Ramalinga Raju-family promoted Maytas Infra, while suggesting that four independent directors be inducted.
However, CLB did not entertain a list of 12 probable directors submitted by Maytas.
It also favoured selecting a chairman from among the four independent directors to be taken on board.
Lenders IDBI Bank, ICICI Bank and IL&FS said they welcomed the suggestion for inducting independent directors, while saying they do not want their own representatives for the role.
CLB had on Thursday said it was against superseding the Maytas Infra board.
Sources said the order is likely to be pronounced next week.
Maytas Infra is run by B Teja Raju, the elder son of B Ramalinga Raju, who confessed to manipulating the accounts of Hyderabad-based Satyam Computer Services.
The CLB principal bench, headed by chairman S Balasubramanian, has suggested the Maytas' board should retain its current board and also have government-nominated independent directors. The bench also hinted giving board representation to its lenders, IDBI Bank and ICICI Bank.
However, it was against giving a board seat to IL&FS, a leading non-banking finance company, citing conflict of interest as the financial institution had given loans to the promoters against pledging of shares.
In Thursday's hearing, the bench observed that if new board is put in place, they would need to start from scratch. It suggested retaining the current Maytas Infra board members and adding new government-appointed directors. The CLB has sought a reply from Maytas Infra by Friday.
The government counsel on Thursday said that as investigations are on in Maytas, a hostile management wouldn't cooperate and the present board should be restrained from acting as directors.
The government also said there is evidence the firm fudged its accounts with deceit and fraudulent intent, which brought the share price of Maytas Infra from Rs 525 to Rs 46 on Thursday.
The government last week had moved the CLB for taking over the boards of Maytas Properties (run by Ramalinga Raju's younger son B Rama Raju) based on information that the management of these two companies had indulged in fraudulent activities and financial irregularities.
The government had petitioned the CLB to allow it to takeover the Maytas Infra board, remove the board members of both Maytas Infra and Mytas Properties and replace them with government nominees. While the CLB has reserved its order for Maytas Properties, it is likely to pass an interim order for Maytas Infra on Friday.Additional inputs: PTI
