Raymond's independent directors vouch to protect investors against MD's marital disputes

Raymond

01/12/2023 07:12

BENGALURU, Dec 1 (Reuters) - The independent directors
of Indian textile company Raymond  RYMD.NS  said on Friday they
will take measures, if needed, to protect business and
stakeholder interests from marital disputes between Managing
Director Gautam Singhania and his wife and board member Nawaz
Modi Singhania. 
    This comes after Institutional Investor Advisory Services
(IIAS), an Indian proxy advisory firm, this week urged the
independent directors to launch an investigation into
allegations of assault against Gautam Singhania and communicate
with investors and other stakeholders to assuage their concerns.
    The independent directors have been meeting over the last
few weeks and monitoring the situation as it "affects" the
company and minority shareholders, they said.
    They "shall not hesitate to proactively initiate measures,
the moment required, to protect the interests of all
stakeholders," according to the statement.
    However, no law or corporate governance standard requires
independent directors to "enquire into, investigate, or delve
into the merits of matrimonial disputes, which lie beyond" their
remit, they added. 
    The independent directors have retained Berjis Desai, a
senior independent legal counsel, to advise them on the matter.
    According to local media reports, Nawaz Modi Singhania
alleged that she and her daughter were physically assaulted by
her husband in September 2023.
    Raymond shares rose on Friday, snapping a twelve-session
losing streak, in which they fell more than 21%. The share slump
started on Nov. 13, when Singhania announced a separation from
his wife on social media platform X, formerly known as Twitter.
    Raymond shares, which are up over 5% so far this year, rose
3%, as of 12:32 p.m. IST. 

 (Reporting by Sethuraman NR in Bengaluru; Editing by Sonia
Cheema)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))