Telecom Lead India: OnMobile CEO and MD Arvind Rao has
resigned after a special review of its corporate governance procedures.
The VAS provider OnMobile is incubated by Infosys Technologies.
Rao, who is also a co-founder, resigned because the
corporate governance weaknesses were identified during his tenure.
On June 1, the company told stock exchanges that Rao would focus on
international growth while the affairs of the company will be managed by two
members of the board.
Mouli Raman, co-founder and executive director, will take on the role of
interim MD. The company has also started the search for a new CEO.
While the review has identified some weaknesses, strong alternate controls have
ensured that the company did not suffer any loss.
R&D head Sanjay Bhambri, CFOs Rajesh Moorti and Amit Rastogi, board members
Sridhar Iyengar and Jayanth Rama Varma, as well as M&A head Sandhya Gupta
have recently resigned.
With sales of nearly Rs 500 crore last year, OnMobile made four acquisitions
and was even planning a listing on the New York Stock Exchange, in preparation
for which it engaged KPMG so that it conformed to IFRS accounting standards.