Raymond Ltd has informed that its shareholders have approved the re-appointment of Gautam Hari Singhania as the Chairman & Managing Director for a further period of five years commencing from 1 July 2024, and the remuneration package payable to him for the said period.
"The company's shareholders, at its AGM held on June 27, approved the re-appointment of Singhania," Raymond Ltd said in a regulatory filing, adding that the AGM commenced at 3 pm and concluded at 4.05 pm.
The ordinary resolution related to the continuation of Singhania in office for another five years was approved by 94.24 percent votes of Raymond's shareholders. They also approved a special resolution pertaining to his remuneration with 84.88 percent vote in its favor.
Proxy advisory firm lIAS had asked Raymond shareholders to vote against the re-appointment of Gautam Singhania on the board. lIAS demanded an independent probe into allegations of domestic violence and financial mismanagement made by Singhania's estranged wife, Nawaz Modi.
Besides, lIAS wanted Singhania and Nawaz Modi to resign from Raymond's board till their divorce-related disputes are resolved and also till an independent investigation is completed.
The lIAS also opposed the remuneration structure that was proposed to be paid to Singhania, saying the minimum limit can be set at a token value of Re 1, but there has been no maximum cap and could very well cross into regulatory limits. This is based on projected earnings of more than Rs 350 mln for FY24 alone.
"The remuneration structure allows him to be paid in excess of regulatory thresholds, which based on FY24 profits alone, can be in excess of Rs 350 mn. The board must provide a maximum cap on the remuneration, and not leave it open-ended with significant headroom built in for possible excessive remuneration," it had said.
Read also | Prosus Writes Off Byju's Investment, Incurs $493 Million Loss
Read also | UltraTech Cement Adjusts Acquisition Plan, Targets 25% Stake in RAKWCT
