Intervention in Infosys

With reference to your excellent editorial, “The way out for Infosys” (August 21), I agree with your view that intervention of Sebi or the ministry of corporate affairs might help limit the damage and clean up the mess at Infosys. We can keep on debating whether (a) the unsolicited actions of Narayana Murthy — particularly his taking the matter to a public platform — or (b) any lack of governance on the part of Sikka or (c) lethargic approach of the Infosys board in defending the CEO have done greater damage to the company. But the fact is that there is a huge mess, and not only the company’s reputation but also that of India as a groundswell of backoffice companies have taken a big hit.

In view of confidentiality agreements, the investigation report of Gibson Dunn & Crutcher may never become public and we will never know whether there was any wrongdoing in the exceptionally high severance package of Rajiv Bansal. Equally, we are unlikely to ever find out if an early reaction by the company’s board in standing by its CEO — in the face of serious allegations by NRN — would have helped douse the fire and placate the grand old man. However, one thing is certain. Murthy had no business to go public on a matter which needed to be resolved by internal discussion. However great his past achievements might have been — and the nation has acknowledged those more than once — now, as a minority shareholder his only recourse was to raise the issue in an extraordinary general body meeting of the company. Corporate history will never forgive him for this cardinal sin!

The intervention of Sebi or the ministry might indeed save the company reputation — or whatever is left of it.