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As the CEO and MD of global software major Infosys, Vishal Sikka resigned from his position in the company on Friday, citing the negative remarks on him as the reason, everyone hopped on the co-founder NR Narayana Murthy, blaming him for the Sikka's resignation.
After Sikka's resignation on Friday, the Infosys Board blamed its founder N.R. Narayana Murthy for the sudden and dramatic resignation saying, "Murthy's continuous assault, including his latest letter, is the primary reason for the resignation of Sikka despite strong Board support."
The board's allegations aren't baseless either, the 50-year-old CEO and MD had cited continuous distractions and disruptions and personal & negative remarks against him as reasons for his resignation and said that they were preventing his ability to accelerate the company's transformation.
"The Board understands and acknowledges Sikka's reasons for resigning and regrets his decision. The Board is also distressed by the personal attacks on the members of the management team made in the anonymous letters and which surfaced in recent months," the company published a statement saying.
The board in a statement said, "Murthy's campaign against the Board and the company has had the unfortunate effect to undermine its efforts to transform itself. The Board has been engaged in a dialogue with the Founder to resolve his concerns over the course of a year, trying to find feasible solutions within the law and without compromising its independence. These dialogues have unfortunately not been successful."
Murthy has been in a long-running battle with the board and top management of the company he co-founded with six others over three decades ago.
Assuring shareholders, employees, customers and communities of not being distracted by Murthy's "misguided" campaign, the company said it would continue to adhere to the highest international standards of corporate governance as it executes its strategy of profitable growth for the benefit of all stakeholders.
Bombarded with board's allegations of 'continuous assault' and 'inappropriate demands' against him, Murthy, on the other hand is coming clean in front of the shareholders. In a statement, Murthy said that his primary concern was the "deteriorating standard" of corporate governance at Infosys.
Referring to the Board's allegations, Murthy said, "I am extremely anguished by the allegations, tone and tenor of the statements."
Speaking of deteriorating conditions of governance, Murthy also mentioned the investigations that cleared Infosys of all charges of mismanagement.
He said, "Several shareholders who have read the whistle-blower report have told me that it is hard to believe a report produced by a set of lawyers hired by a set of accused, giving a clean chit to the accused and the accused refusing to disclose why they got a clean chit!"
"They say that this is not the way an impartial and objective investigation should be held," he added.
The company's CEO and MD, Vishal Sikka's resignation has been accepted and he has been appointed as the Vice-Chairman of the company until the new CEO and MD takes over his position by March 31, 2018. The board has already elevated Chief Operating Officer U.B. Pravin Rao as the interim CEO and MD of Infosys.
-With Agency Inputs