IT veteran NR Narayana Murthy has turned down the offer to become Infosys' Chairman Emeritus saying he wants to avoid conflicts and maintain corporate governance standards at the firm he co-founded 33 years ago.
Murthy, 68, will cease to be the non-executive Chairman with effect from Oct 10.
He had indicated to the Board that in line with the company's high corporate governance standards and to avoid any perceived conflicts, it would not be appropriate for him to be the Chairman Emeritus of Infosys.
The Board has accepted Murthy's decision.
"I am a person who believes in innovation like Vishal. I always keep trying new models and last time in 2011, I chose to be Chairman Emeritus and this time I said let me see what it is like to be an average Joe. I am a shareholder. So I will be an average Joe starting today," Murthy said.
The company is also seeking regulatory guidance on appropriate classification of the founders and their family's share in the company (classified as promoters).
With the last two founders, Narayana Murthy and S Gopalakrishnan demitting office, the founders have neither association with the company nor exercise any control over the affairs of the company after the current date.
The founders have therefore requested to seek appropriate classification of their revised status, Infosys said in a statement. Referring to promoter as an "archaic and outdated concept", Murthy said it did not make sense to be called promoter when they have no executive role in the firm.
"It is predominantly an Indian concept, it's not part of the parlance discussions on modern corporate governance."
"Therefore, we said it doesn't make sense. Why should we be called promoters when we have no executive role in the company," he added.
