Hyderabad, Aug 21 - Corporate Affairs Minister Salman Khursheed Friday said the government would set up an 'early warning system' to pre-empt corporate fraud like that committed by the promoters of Satyam Computers, now Mahindra Satyam.

'Experts are working on a mechanism to detect if something has gone wrong and take remedial measures,' Khursheed told reporters on the sidelines of a national conference on corporate governance, but declined to elaborate.

Addressing the conference, Khursheed called for a system to restrict the number of directors of a company and to ensure that nobody becomes director without knowing his duties and responsibilities.

'It is necessary that we move to a system where nobody becomes a director without certain amount of familiarisation and training and the declaration that they are familiar with their duties,' he said.