Raymond Ltd is seeing a high-stakes corporate battle brew as Institutional Investor Advisory Services (IiAS), a proxy advisory firm, has recommended that independent directors of the firm investigate serious allegations against group Chairman and Managing Director Gautam Singhania.
What Happened: These allegations, brought forth by Singhania’s estranged wife, Nawaz Modi, include charges of domestic violence and the misuse of company funds, Moneycontrol reported.
In an open letter directed at key independent directors – Mukeeta Jhaveri, Ashish Kapadia, Dinesh Lal, K Narsimha Murthy and Shiv Surinder Kumar – IiAS underscored the urgency of the investigation and advocated for the temporary exclusion of both Singhania and Modi from the Board during the inquiry.
The advisory firm further suggested the engagement of an independent legal counsel to ensure an unbiased investigation and protect the Board from potential repercussions. Transparent communication with investors and stakeholders was also encouraged to allay concerns and provide a clear roadmap for addressing the allegations.
Crux Of The Issue: IiAS posed questions that the investigation should address, including potential violations of the company’s code of conduct, the prospect of criminal liabilities, alignment of actions with the company’s brand and the impact on Singhania’s role amid divorce proceedings.
The advisory firm concluded its letter by stressing the importance of safeguarding the company’s integrity and protecting stakeholders from the fallout of a prolonged and acrimonious battle between Singhania and Modi.
Price Action: Raymond’s shares were under pressure after news of the open letter broke. The stock was languishing 3.68% in the red at ₹1,587.85 in late afternoon trade on Tuesday.
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