Raymond’s Independent Directors have engaged the services of an independent senior legal counsel to offer guidance amidst the ongoing marital discord involving Chairman and MD Gautam Singhania and Nawaz Modi, as stated in a stock exchange notification on Friday.
The company’s announcement emphasised the Independent Directors’ commitment to preventing the matrimonial disputes between the two promoter directors from adversely affecting the Chairman & Managing Director’s ability to manage the company’s affairs and business.
The statement read, “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 Chairman & Managing Director to manage the affairs and business of the Company.”
It further mentioned that the Independent Directors have chosen Berjis Desai, a senior independent legal counsel with no affiliations to the promoters or the company, to advise them. The Independent Directors reassured stakeholders that they would act impartially and highlighted that neither the law nor any corporate governance standard mandates them to delve into the merits of matrimonial disputes.
“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 said.
In response to recent developments, Institutional Investor Advisory Services (IiAS) recommended that the independent directors consider appointing an interim CEO and investigate allegations involving assault and misuse of company funds. IiAS suggested a temporary break for Singhania and Modi from their board responsibilities.
Singhania, in a late November communication to employees and board members, affirmed his commitment to Raymond’s operational continuity despite personal challenges. He mentioned, “Even in these difficult times for me, I assure you that at Raymond, it is business as usual.”
