The Company Law Board, has allowed Mahindra Satyam to allot 19,86,58,498 equity shares to the company's new owners, on preferential basis, in a response to Mahindra Satyam's (erstwhile Satyam Computer Services) application requesting to issue equity shares.

CLB Chairman, S Balasubramanian said: "The company (Mahindra Satyam) is authorised to issue and allot 19,86,58,498 equity shares of Rs two each at the premium of Rs 2.50 to Venturebay." Earlier, Venturebay could not buy 20 per cent shares of Satyam Computer from the open market.

The company is also allowed by CLB, a quasi-judicial body that deals with company affairs of India, to select auditors for conducting fresh auditing of the firm.

Mr. Balasubramanian further added: "The board of the company is authorized to appoint statutory auditors to conduct and carry out audit of the company of the year 2009-2010 subject to notification by the general body as when the AGM is held."

Tech Mahindra had acquired 31 per cent shares in Satyam in April, and had sought the acquisition of additional stocks in the company through preferential allotment of stocks.