Raymond Independent Directors Hire Berjis Desai As Legal Counsel Amid Singhania Row
The independent directors are monitoring developments between promoter directors Gautam Singhania and Nawaz Modi, they said.
Independent directors of Raymond Ltd. have hired Berjis Desai as the legal counsel and are monitoring the recent developments between promoter directors Gautam Singhania and Nawaz Modi.
"The ID have decided to retain Berjis Desai, senior independent legal counsel, who has no links with the promoters or the company, for advising the ID," an exchange filing said.
The ID have been monitoring the recent situation between the chairman and his wife, as it affects the company and the minority shareholders. The directors have also alerted that the matrimonial difference between the two promoter directors will not "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," it said.
The directors reiterated their commitment to protect stakeholders and employees and said they would not hesitate to take measures, as required, in order to protect stakeholders' interest.
"The ID would like to assure the stakeholders that the ID shall act dispassionately. The paramount consideration shall always be the interests of the company as a whole and its non-promoter shareholder. Any material development or remedial measures which impacts the company shall be forthwith communicated in a spirit of complete transparency."
This comes after a proxy advisory firm Institutional Investor Advisory Services in an open letter to five independent directors asked the IDs to investigate the allegations of assault by Singhania on both his wife and daughter and use of company funds for personal benefit. IiAS also suggest the appointment of interim CEO.
The billionaire industrialist in November announced separation from his wife Nawaz on the microblogging platform X after being together for 32 years as a couple. The announcement came after Modi alleged, she was not being allowed to enter the Diwali party hosted by Singhania.
The shares of Raymond on Friday rose 5.35% at Rs 1,583.90 as of 1:00 p.m. after the independent directors released a statement. This compares to a 0.71% advance in the NSE Nifty 50 Index.
The shares of Raymond have fallen as much as 14.60% in the last month. The company has lost over $180 million in market value since Singhania announce the separation from his wife, according to a Bloomberg Report on Nov. 23.
