The independent directors of Raymond Limited have clarified their stance regarding the ongoing matrimonial disputes between the company's two promoter directors, stating that neither legal obligations nor corporate governance standards mandate them to delve into such matters beyond their purview.
Emphasizing their vigilance, the independent directors highlighted their commitment to safeguarding the interests of non-promoter minority shareholders, employees, and stakeholders amid the situation. They reiterated their proactive approach to protect stakeholders' interests and disclosed their decision to retain a senior independent legal counsel, Berjis Desai, unaffiliated with the promoters or the company, for advisory purposes.
Assuring stakeholders of their impartiality, the independent directors pledged to prioritize the overall interests of the company and its non-promoter shareholders. They committed to transparently communicating any significant developments or remedial measures impacting the company.
In a letter addressed to the independent directors of Raymond Limited, the corporate governance advisory firm, Institutional Investor Advisory Services India Limited (IiAS), urged the directors to shield the company from potential prolonged disputes between Nawaz Modi Singhania and Gautam Singhania. Nawaz Modi Singhania, a board member, had alleged physical assault by Gautam Singhania at company premises and raised concerns about company funds being used for personal benefits, positioning herself as a whistle-blower.
Expressing investor concerns over the silence of the independent directors amidst serious accusations, IiAS highlighted the substantial decline in the company's stock price in recent days. The advisory firm emphasized the potential misinterpretation of the directors' silence and urged them to address the accusations without tolerance, considering the implications for stakeholders.
(With Agency Inputs)
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