Corporate Jun 8, 2013
New Delhi: US-based outsourcing firm iGate said majority of its shareholders have consented to the removal of former CEO Phaneesh Murthy from the firm's board for 'cause'.
Murthy, who was sacked on May 20 this year as iGate's chief executive for not disclosing a relationship with a subordinate, ceased to be its board member effective yesterday.
"A majority of the shareholders of iGATE Corporation removed Phaneesh Murthy for 'cause' from the Board of Directors by written consent in lieu of a meeting. Murthy's removal is effective June 7, 2013," iGate said in a filing to the US Securities and Exchange Commission (SEC) yesterday.
No positions were held by Murthy on any committee of the Board of Directors at the time of his removal, it added.
"Murthy's removal was not due to a disagreement with the company on any matter relating to the company's operations or practices.
"Rather, the shareholders determined that it was in the best interests of the company to remove Murthy from the Board of Directors for 'cause' because he engaged in conduct detrimental to the company, including without limitation, violating company policy and breaching his duty of good faith in his dealings with the Board of the Directors," it said.
The filing further added: "As a result of this conduct, Murthy was previously terminated as the Chief Executive Officer and President of the company on May 20, 2013."
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