Raymond independent directors vouch to protect shareholders in fresh statement on CMD gautam singhania and wife nawaz modi marital dispute

Raymond Ltd’s independent directors (ID) said on Friday that they will take measures to protect the interests of non-promoter minority shareholders, employees, and other stakeholders of the company.

The statement from the Raymond ID, posted by the company in a stock exchange filing, comes amid the ongoing divorce settlement dispute between chairman and managing director (CMD) Gautam Singhania and estranged wife Nawaz Modi, who is also a board member.

“The ID, over the last few weeks, have been meeting and monitoring the situation so far as it affects the Company and the minority shareholders; and reiterate their commitment to protect, at all times, the interests of non-promoter minority shareholders, employees and other stakeholders,” the statement read.

The ID also said they are “alert to ensure that the matrimonial disputes between two promoter directors do not in any many affect the capacity of the chairman and managing director to manage the affairs and business of the company.”

“However, it may be appreciated that neither any law nor any corporate governance standard requires ID to enquire into, investigate, or delve into the merits or otherwise, of such matrimonial disputes, which lie beyond the remit of the ID,” the statement noted.

“The ID shall continue to exercise utmost vigilance in watching the evolving situation and shall not hesitate to proactively initiate measures, the moment required, to protect the interests of all stakeholders,” it added.

Furthermore, the ID assured stakeholders that they shall act “dispassionately” to ensure the best interests of the company as a whole and its non-promoter shareholders.

“Any material development or remedial measures which impact the company shall be forthwith communicated in a spirit of complete transparency,” it added.

The statement from Raymond’s ID comes after proxy advisory firm IiAS urged them to investigate allegations of assault by Gautam Singhania against his Nawaz Modi.

Nawaz Modi alleged that she and her daughter were physically assaulted by Singhania in September 2023. During an in-depth interview with India Today TV, she shared details regarding the alleged incidents of assault involving her husband, Gautam Singhania, that occurred in September.

On the other hand, Gautam Singhania has refrained from commenting on the matter, and in an internal email to employees and board members, he said it is business as usual at Raymond.

Following the statement from Raymond’s independent directors, the company’s shares gained over 3 per cent at around 1:20 pm, breaking a 12-day losing streak.

Published By:

Koustav Das

Published On:

Dec 1, 2023

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