The board of directors of Raymond will decide on the future course of action after shareholders rejected the proposal to sell JK House to its promoters and the extended family at a big discount, said CMD Gautam Hari Singhania. On June 5, the shareholders of Raymond with an overwhelming majority of 97.67 per cent had rejected the resolution to sell flats at JK House at a substantial discount to the prevailing market prices. Only 2.32 per cent of votes polled were in favour.
“It’s for the board to decide. We are a professional company with the highest level of corporate governance,” Singhania said on the sidelines of an event here when asked about the future course of action on the JK House issue.
Raymond had asked its shareholders to either reject or approve an offer required to be made by the company under a tripartite agreement entered into in 2007 among the firm, lessor and occupants — all part of the promoters and their extended family — of JK House.
Under the agreement, the company was required to sell flats at JK House at a substantial discount to the existing market prices. “I was not allowed to vote on it and I categorically said that if I was allowed to vote, I would have voted against it,” Singhania said.
Even before the voting, he had asked shareholders to vote against the resolution. The decision by shareholders was in the best interest of the company and the stakeholders, he had stated.
Proxy firm Institutional Investor Advisory Services (IiAS) had also given recommendations against the proposal, saying Raymond’s promoters and their extended family were trying to buy the premium property in Mumbai from the company at “throwaway rates” which will result in a loss of over Rs 650 crore to the company and its shareholders.