Over the past two weeks, the independent directors have been gathering to discuss how the situation “affects” the company and minority shareholders.
Bengaluru: On Friday, the independent directors of the Indian textile manufacturer Raymond declared that, should the need arise, they will take action to safeguard the interests of the business and stakeholders against marital strife arising between the company’s managing director, Gautam Singhania, and his spouse, board member Nawaz Modi Singhania.
This comes after Indian proxy advice firm Institutional Investor advice Services (IIAS) encouraged the independent directors to look into accusations of assault against Gautam Singhania and to get in touch with investors and other stakeholders to allay their fears this week.
The position as it “affects” the company and minority shareholders has been the subject of meetings by the independent directors over the past few weeks, they said.
As stated in the statement, they “shall not hesitate to proactively initiate measures, the moment required, to protect the interests of all stakeholders.”
The independent directors clarified that they are not obligated by law or corporate governance standards to “enquire into, investigate, or delve into the merits of matrimonial disputes, which lie beyond” their purview.
Senior independent legal counsel Berjis Desai has been hired by the independent directors to provide them with advice on the subject.
Local media outlets said that Nawaz Modi Singhania claimed her husband had physically abused her and her kid in September 2023.
After falling more than 21% over the previous twelve sessions, Raymond shares saw a rise on Friday. When Singhania declared his divorce from his wife on the social media site X, which was then known as Twitter, on November 13, the share price fell.
As of 12:32 PM IST, Raymond shares, which have increased by more than 5% this year, had increased by 3%.
Raymond’s independent directors are urged by a proxy advisory firm to look into claims of assault against CMD.
Nawaz Modi Singhania, a board member and the estranged wife of Managing Director Gautam Singhania, reportedly claimed in local media that Singhania physically abused her and her daughter in September 2023.
The Indian proxy advice firm Institutional Investor advice Services (IIAS) pushed Raymond Ltd.’s independent directors to look into the claims of abuse made against the company’s managing director on Tuesday.
According to CNBC TV 18, Singhania wrote a letter to the board of the company ensuring that the business would continue to run smoothly while he and his wife are still separated.
The letter has not been read by Reuters on its own. A firm representative did not promptly respond to an email received by Reuters.
For the tenth consecutive session, Raymond’s shares plummeted on Tuesday; nearly 16 percent has been lost in that time. When Singhania announced his divorce from his wife on social media platform X, formerly known as Twitter, on November 13, the share price collapse began.
In an open letter, IIAS stated that in order to address investor and stakeholder concerns, the independent directors must “articulate a course of action they have taken following these public allegations.”
“In the interest of the company and safeguard the interests of a larger set of stakeholders, we urge you to undertake an independent investigation into the allegations of both, assault and CEO excesses,” the IIAS stated.
Committed to ensuring Raymond runs smoothly; business as usual Gautam Singhania, CMD
Amidst rumours regarding the future of their 32-year marriage, Singhania announced earlier this month that he and his wife Nawaz had separated.
New Delhi: Raymond Chairman and Managing Director Gautam Singhania has reassured staff and board members that the company is operating “business as usual” and that he is completely dedicated to its seamless operation notwithstanding personal concerns.
Singhania, who announced his divorce from wife Nawaz earlier this month, said in an internal email to Raymond’s staff and board members that “preserving the dignity of my family is paramount to me” and that he has chosen not to comment on media reports “about matters pertaining to my personal life.”
Nevertheless, in my capacity as Chairman and Managing Director, I am unwavering in my resolve to ensure the seamless operation of the company and its operations. “At Raymond, things are going as usual, even though these are trying times for me,” he wrote in his letter.
“Over the past few months, as you are all aware, we have made tremendous progress in building our businesses to an exponential scale. We also achieved our best quarter ever, which comes after nine consecutive quarters of performance improvements.
“Recently, we have almost doubled our engineering business by entering sunrise sectors of aerospace, defense, electric vehicle components through MPPL’s (Maini Precision Products Ltd) acquisition, and have also been awarded two marquee real estate projects in our focus market of Mumbai Metropolitan Region,” said Singhania.
Even with his personal problems, he declared, “I am steadfast to create and deliver value to all our shareholders and ensure the interests of our customers, employees, and other stakeholders.”
When contacted, a representative for Raymond confirmed that Singhania had sent the internal correspondence to the company’s staff and board members.
Amidst rumours regarding the future of their 32-year marriage, Singhania announced earlier this month that he and his wife Nawaz had separated.
Declaring that this Diwali was unlike any other, the billionaire industrialist—whose estimated net worth is above Rs 11,000 crore—made the statement on the microblogging site X.
Nawaz, a fitness trainer, and the industrialist, who is leading the multi-decade business with roots in textiles and has branched out into other ones like real estate, said they were a relationship for 32 years.
Singhania stated that the couple’s two kids grew up together and supported one another during their years of friendship.