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IT services firm Coforge is facing escalating boardroom turmoil following the abrupt resignation of independent director and Nomination and Remuneration Committee (NRC) Chairperson D.K. Singh on September 10, 2026. The departure marks the second major board-level exit in under a week, arriving just days after former Chairman O.P. Bhatt stepped down amidst an internal audit probe.
The Stated Reason vs. The Board’s Rebuttal
In his resignation letter, Singh cited “differences and tension” between independent and executive directors, claiming that the company’s ongoing transition from a private equity-led board to an independent one had created friction. He expressed concerns that the recent addition of new board members could alter the company’s strategic direction, compensation strategies, and transparency priorities.
The Coforge board aggressively pushed back on the narrative, describing Singh’s allegations as “unfounded” and a mere “afterthought”. The company emphasized that since 2024, the board has operated with complete unanimity on all business strategy and governance decisions.
The Underlying Catalyst: KPMG Audit Findings
The current boardroom shakeup traces back to a recent KPMG internal audit that exposed significant governance lapses regarding a fiscal 2026 board evaluation exercise.
Withheld Information: The audit revealed that critical performance evaluation reports—specifically those containing the lowest ratings for the Chairman category—were provided to Singh but deliberately withheld from the rest of the board.
The Fallout: Following the audit’s findings, the board sought formal explanations exclusively from Bhatt and Singh. Bhatt resigned on September 8 while his response was still being evaluated, and Singh followed suit two days later.
Business Continuity: Coforge assured investors that the dispute is strictly tied to the regulatory board evaluation process and does not impact the company’s financials, operations, or strategic outlook.
Interim Leadership
To stabilize governance, the board has appointed Non-Executive Independent Director Vivek Sharma as interim Chairperson until January 31, 2027. Meanwhile, Beth Boucher has been designated to take over Singh’s role as the new chairperson of the reconstituted NRC. Sharma will now spearhead the search for additional independent directors to help navigate the ongoing leadership transition.
