Raymond’s independent directors said on Friday they will protect the interest of shareholders and employees, assuring them of acting dispassionately and exercising ‘utmost vigilance’. This is despite no law requiring them to investigate matters such as matrimonial disputes.
The independent directors also decided to retain Berjis Desai, a senior independent legal counsel, who has no links with the promoters or the company, for advising them.
“The independent directors, 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,” a statement by them said.
The move comes after proxy advisory firm Institutional Investor Advisory Services India (IiAS) urged Raymond’s independent directors to probe into the allegations against chairman and managing director Gautam Singhania, made by his estranged wife Nawaz Modi. In an open letter on Tuesday, IiAS also asked them to appoint an interim CEO till the investigations are complete and warned that their silence could be misconstrued.
IiAS also stated that following the allegations, the firm’s share prices have been on a downtrend. Raymond’s share price slumped 21% to Rs 1,503 and its market cap eroded by Rs 2,647 crore to Rs 10,009 crore after the row came to light. On Friday though, it rose 4.01% to Rs 1,563.05 on the BSE.
According to the statement issued by Raymond, the independent directors are alert to ensure that the matrimonial disputes between the two promoter directors do not, in any manner, affect the capacity of the CMD to manage the affairs and business of the company. It added said that no law nor any corporate governance standard requires them to investigate, or delve into matters such as matrimonial disputes.
“The independent directors will 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.”
IiAS, in its letter, addressed to Mukeeta Jhaveri, Ashish Kapadia, Dinesh Lal, K Narsimha Murthy and Shiv Surinder Kumar (all the independent directors of Raymond), asked for a probe into the allegations of assault and excesses against Singhania. It also wanted Singhania and his wife to take time off from their responsibilities as board members till the completion of the probe.