The independent directors of Raymond Ltd have publicly addressed the ongoing matrimonial dispute between Chairman Gautam Singhania and his estranged wife Nawaz Modi, reassuring shareholders of their commitment to safeguarding their interests amid the personal turmoil affecting the company’s leadership.
In a joint communication shared on the Bombay Stock Exchange (BSE), the independent directors affirmed their dedication to monitor the situation closely to prevent any disruption in the firm’s operations. They emphasized their responsibility in protecting the rights of non-promoter minority shareholders, employees, and other stakeholders amidst the familial discord.
Despite the sensitive nature of the issue, the independent directors clarified that corporate governance standards do not mandate their involvement in the personal disputes of the promoters. However, they affirmed their vigilance in ensuring that the Chairman & Managing Director’s capacity to oversee the company remains unaffected by the ongoing conflict.
Furthermore, the directors announced their decision to retain Berjis Desai, an impartial legal counsel with no affiliations to the promoters or the company, to provide guidance to the independent directors.
This stance from the independent board members follows suggestions from proxy advisory firm Institutional Investor Advisory Services (IiAS), urging the directors to consider appointing an interim CEO and investigate allegations of assault by Singhania on his wife and daughter, along with the purported misuse of company funds for personal purposes.
Gautam Singhania, in an internal communication to Raymond’s employees and board members, reaffirmed his commitment to the company’s uninterrupted operations despite the personal challenges. Singhania emphasized that Raymond would function seamlessly, reassuring stakeholders of business continuity amidst the challenging period.
This recent development emerges after Singhania’s public announcement of his separation from Nawaz earlier this month, marking a significant shift in their 32-year relationship. The industrialist, known for steering the multi-faceted Raymond Group, has underscored his dedication to maintaining the company’s regular operations despite the personal upheaval.
The situation continues to draw attention amid concerns about its impact on Raymond’s operations and corporate governance, prompting proactive measures from the independent directors to uphold the interests of all stakeholders while ensuring business continuity.
Sources By Agencies