They claim that the company’s interests are “primary consideration,” since a feud between chairman Gautam Singhania and his estranged wife reduces market value.
Raymond’s five independent directors have appointed independent senior lawyer Berjis Desai to advise them on the family quarrel between business chairman Gautam Singhania and his estranged wife Nawaz Modi.
The company’s independent directors (ID) stated in a statement that they will operate impartially and without taking sides. “The interests of the company as a whole and its non-promoter shareholders shall always take precedence.” Any major development or corrective action that has an impact on the firm will be notified as soon as possible in a spirit of total transparency,” the board of directors stated.
The board of directors stated that they have been watching the issue for several weeks and are dedicated to protecting the interests of non-promoter minority shareholders, workers, and other stakeholders.
According to the statement, they will guarantee that the divorce conflict between the two promoter-directors does not “affect the capacity” of the chairman and managing director (Singhania) to administer the firm.
“However, it should be noted that no law or corporate governance standard requires ID to inquire into, investigate, or delve into the merits or otherwise of such matrimonial disputes, which fall outside of the ID’s purview.” The ID will continue to keep a close eye on the issue and will not hesitate to take proactive actions to address it if necessary.
Raymond has lost substantial market value since November 13, when Singhania announced his separation from Nawaz Modi, a director on the board.
The Singhania family holds half of the company’s shares, which have declined in value since the news of the split became public on November 13. In a media interview with a newspaper, Modi accused corporate governance shortcomings in the firm and stated that she addressed a few problems involving suspected abuse of company cash during a board meeting on November 8.
Singhania was quoted as saying: “In the interest of my two sweetheart daughters and to respect my family’s dignity, I will refrain from offering any comment.”
Nawaz Modi had previously claimed that Singhania was attempting to remove her off the board, and she had protested outside the gates of a Raymond plant in Thane, near Mumbai, on Diwali eve after being denied admission to a business party.
