The Hindu : Business : Infosys fines CEO

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Wednesday, Jan 23, 2008
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Infosys fines CEO

BAGALORE: Software major Infosys Technologies has imposed a fine on its CEO and Managing Director S. Gopalakrishnan for not reporting within the stipulated time a change in his shareholding.

On December 24 last year, Mr. Gopalakrishnan inherited 12,800 equity shares from his mother, the Bangalore-headquarted company, listed on NASDAQ, said in a filing with the U.S. Securities and Exchange Commission.

“Mr. Gopalakrishnan inadvertently failed to notify the company within one business day following the change in his shareholding, which failure was also a violation of the company’s Insider Trading Rules,” the filing said.

On January 10 this year, the audit committee of the company’s board of directors determined that Mr. Gopalakrishnan’s failure to provide notification was a technical violation of the Insider Trading Rules, although it noted that it believed that he had no intention of contravening the Rules.

“However, given the position of responsibility held by Mr. Gopalakrishnan in the company, the audit committee imposed upon him a penalty of Rs. 5 lakh, which Mr. Gopalakrishnan was directed to donate to a charitable organisation of his choice,” the filing said.

Mr. Gopalakrishnan has made the donation as directed by the company’s audit committee. — PTI

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