Coforge chairman resigns after internal audit raises concerns
What's the story
Coforge, a leading Indian IT services provider, witnessed a major fall in its shares today after the resignation of its chairman, Om Prakash Bhatt. The decision comes after an internal audit flagged concerns over the company's board evaluation process. Bhatt was appointed as the chairman of Coforge's board in 2024 and was set to serve until April 2027. The company's shares fell over 6% to around ₹1,829 on the NSE in today's session.
Audit findings
Internal audit flags concerns over board evaluation process
The internal audit, part of the Q2 FY26 plan, examined the board evaluation exercise and its resulting report. It flagged concerns over how these were handled and presented to the board.
The review also found that certain material information related to Bhatt's performance wasn't fully disclosed when presenting this report.
However, Coforge has not elaborated on what specific information was withheld from the board.
Resignation details
Bhatt acted in good faith, says resignation letter
After the audit's findings, the board raised its concerns with Bhatt and sought an explanation.
While he did respond, the board was still evaluating it when he resigned on September 8.
In his resignation letter, Bhatt maintained that he had acted in good faith during the board evaluation process.
He further stated that continuing on the board amid a disagreement over his actions would not be conducive to its effective functioning.
New appointment
Vivek Sharma appointed interim chairman
In light of Bhatt's resignation, Coforge has appointed Vivek Sharma, a non-executive independent director, as the interim chairman. He will hold the position until January 31, 2027.
The sudden change in leadership and governance issues highlighted by the internal review have raised investor concerns.