Coforge boardroom gets tense as director walks out
IT services firm Coforge experienced a tense boardroom situation as its independent director, DK Singh, resigned from the board with immediate effect. This marked the second board-level exit at Coforge within a week, following the departure of former chairman Om Prakash Bhatt on Tuesday. Singh's resignation stemmed from allegations that he and Bhatt suppressed certain material information in the company's board evaluation report. KPMG, Coforge's internal auditor, questioned this decision, as reported exclusively by ET.
Singh explained in his resignation letter that the transition of the board from a private equity-led structure to a more independent board had created some differences and tension, particularly between independent and executive directors. He further stated that while he believed the transition was moving in the right direction, it also led to disagreements.
The board responded to Singh's letter, expressing surprise at the allegations of tension and dismissing them as unfounded. They emphasized that they welcome constructive debate and different viewpoints but believed the current circumstances might make it increasingly difficult for Singh to effectively fulfill his responsibilities as an independent director.
In response, Coforge's board reconstituted the NRC and SRC and appointed Vivek Sharma as interim chairperson until January 31, 2027. The board also designated Beth Boucher, a non-executive independent director, as the chairperson of the NRC. The internal audit identified gaps in the circulation and presentation of board evaluation reports for fiscal 2026, which were not shared with all board members, including independent directors.
The board evaluation report indicated that Bhatt received the lowest rating among the directors, while the CEO received a perfect score of five out of five. The internal review examined board evaluation process related documents and did not find any link to the company's financial statements, revenue, profitability, or business outlook.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
