The independent directors of Raymond Ltd have stated that they are closely monitoring the situation surrounding the matrimonial dispute of the company’s Chairman and Managing Director, Gautam Singhania. They are determined to ensure that the dispute does not affect Singhania’s ability to manage the company’s affairs and business. In order to advise them, the independent directors have decided to retain Berjis Desai, a senior independent legal counsel who has no affiliation with the promoters or the company.
In a joint communication released by the company on the Bombay Stock Exchange (BSE), the independent directors reiterated their commitment to protect the interests of non-promoter minority shareholders, employees, and other stakeholders. They clarified that it is not within their purview to investigate or delve into the merits of the matrimonial disputes, as it goes beyond their role as independent directors. However, they assured that they will remain vigilant and take proactive measures to protect the interests of all stakeholders if necessary.
This decision to retain Desai as legal counsel follows a recommendation by proxy advisory firm Institutional Investor Advisory Services (IiAS). IiAS had suggested that the independent directors consider appointing an interim CEO and investigate allegations of assault by Singhania on his wife and daughter, as well as the alleged misuse of company funds for personal gain.
In an open letter to the five independent directors of Raymond Ltd, IiAS proposed that both Singhania and his estranged wife, Nawaz Modi, take time off from their responsibilities as board members. The five independent directors addressed in the letter are Mukeeta Jhaveri, Ashish Kapadia, Dinesh Lal, K Narsimha Murthy, and Shiv Surinder Kumar.
Despite the ongoing dispute, Singhania reassured the company’s employees and board members that it is “business as usual” at Raymond Ltd. In an internal email, Singhania stated that he remains committed to his role as Chairman and Managing Director, emphasizing the importance of maintaining the dignity of his family.
Earlier this month, Singhania publicly announced his separation from his wife Nawaz, sparking speculation about the future of their 32-year relationship. Singhania, a billionaire industrialist, is leading the multi-decade old Raymond Group, which has diversified from textiles to real estate. He expressed his determination to continue focusing on the smooth functioning of the company and its business.
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