Infosys imposes Rs 5-lakh fine on CEO

[Thilaga]

Software services firm Infosys Technologies has imposed a fine on its chief executive officer S 'Kris' Gopalakrishnan and an independent director Jeffrey Sean Lehman for violating company rules.

The audit committee of Infosys [Get Quote] Technologies' board of directors has imposed a penalty of Rs 5 lakh (Rs 500,000) on Gopalakrishnan and a fine of $2,000 on Lehman as they failed to comply with the insider trading norms of the company, Infosys said in a notice to the US Securities and Exchange Commission.

According to the insider trading rules, a director, officer or other designated employees of the firm may buy or sell its securities only after prior notification and must notify within one business day following any change in his or her shareholding, it added.

The process requires the employee to apply to the firm's compliance officer for pre-clearance of each of such transaction and provide certain information and undertakings to the company through its compliance officer.

On December 24, 2007, Gopalakrishnan, the chief executive officer and managing director of Infosys Technologies inherited 12,800 equity shares from his mother.

However, he failed to notify the company within one business day following the change in his shareholding, which led to the imposition of Rs 5 lakh (Rs 500,000) penalty.

Gopalakrishnan was directed to donate the amount to a charitable organisation of his choice and he has made the donation as directed by the company's audit committee.

Besides, on December 7, 2007, Jeffrey Sean Lehman, an independent director of Infosys sold 900 American depositary shares (ADSs) of the company.

Though, Lehman notified the company of his intent to sell his ADSs, and also informed within one business day about the execution of the transaction, he failed to seek approval of the company's compliance officer and requisite information in advance of such sale, which were violation of the firm's insider trading rules, Infosys said.

Accordingly, the audit committee of the company's board of directors, on January 2, this year imposed a penalty of $2,000 upon Lehman and he was directed to donate it to a charitable organisation of his choice. Lehman has made the donation as directed by the company's audit committee.

[Sudhakar]

Hi Acumen,

Thank you for the Information, We request you to add a field called "Source from"

Source From : Enter site address or any news paper name , etc.

And at the bottom of the posted informations you will have a field call Add Tag,

Kindly typing Some Tags associated with the Message you are posting.

For Ex, just look at the Next post.

Thanks & Regards,
Admin  IT Acumens

[Sudhakar]

Bangalore: Five workers were killed and 13 others injured in the campus of IT major Infosys Technologies on Wednesday, when a scaffolding crashed at the site of an additional software development centre, police said.

"The incident occurred when the victims who were fixing the facade of the glass standing on the scaffolding fell on a concrete floor from a height of 45-50 feet after one of the ropes (holding the scaffolding) gave way from the top," Bangalore Deputy Commissioner of Police (south-east) Subhendru Mukherjee said.

The injured have been rushed to the St John's Hospital in the city and Narayana Hrudyalaya, adjacent to the electronics city, about 30 km from Bangalore, for treatment. One of them was reported to be critical, while the remaining 12 were recovering.

An official of Shoba Developers, a construction firm that executes all Infosys building projects in the country as its main contractor, said the families of the five victims would be paid about Rs.2,50,000 as ex-gratia under the Workers' Compensation Act and a matching amount by the company after completing investigations into the incident.

The IT bellwether has one of the largest campuses in the electronics city on the outskirts of Bangalore. The specific work of fixing the glass facade was sub-contracted to CCCL Ltd of Chennai, the official said.

This is the second accident in the electronics city after three workers died last week in the Biocon Park campus when an under-construction storeroom came crashing down.

Source : IBN Live