iGate ex-CEO Phaneesh Murthy removed from board
Majority of shareholders removed former CEO Phaneesh Murthy for 'cause' from the iGATE Corp board by written consent in lieu of a meeting.business Updated: Jun 10, 2013 03:15 IST
US-based software firm iGate has removed former chief executive officer Phaneesh Murthy from the company's board for a “cause” with immediate effect. Murthy’s removal from iGate’s board comes close on the heels of his being sacked as the CEO on May 20.
“A majority of the shareholders of iGate Corporation removed Phaneesh Murthy for a ‘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.
Phaneesh Murthy was unavailable for comments.
iGate rules make it mandatory for employees to report any relationship with colleagues, a clause which Murthy failed to adhere. He was sacked last month as the company’s CEO on charges of sexual harassment by an investor relations employee of iGate. “As a result of this conduct, Murthy was previously terminated as the CEO and president of the company on May 20, 2013,” iGate explained in its filing to the US SEC.
Murthy had then claimed that he had informed iGate co-chairman Sunil Wadhwani about his relationship and, hence, had not violated company policy. Interestingly, even after his sacking as CEO, Murthy continued to be a board member at iGate.
The company in its filing made it clear that Murthy is being removed from this position as well.
This is the second time that Phaneesh Murthy (49) has been forced to resign on this charge. In 2002, Murthy, then a rising star at Infosys and head of the company’s US sales team, had to quit following accusations of sexual harassment by Reka Maximovitch, his secretary. The company settled the issue out-of-court for $3 million in 2003.