Issuing new capital usually requires shareholder approval under Indian law, which the board wanted to avoid to save time, it said in a submission to the CLB.

The company also announced cost-cutting measures this week, including a freeze on capital expenses, and said two key executives had resigned from the company as part of its "cost-rationalization" effort. The moves are intended to make Satyam attractive to an investor, a source close to the situation said.

The board also accepted on Saturday the resignation of the company's auditors Price Waterhouse, the Indian unit of PriceWaterhouseCoopers.