In a statement, the independent directors said that they have been “meeting and monitoring the situation” over the last few weeks as it “affects the company and minority shareholders”. However, they added that no law or corporate governance standards require independent directors to “enquire into, investigate or delve into the merits of matrimonial disputes, which lie beyond their limit”.
Their statement comes after shareholder advisory firm Institutional Investor Advisory Services (IIAS) urged the independent directors to conduct a probe into the allegations and communicate with investors and other stakeholders to assuage their concerns.
They said they are “alert to ensure that the matrimonial dispute does not in any manner affect the capacity of the CMD to manage the affairs of the company”. IIAS in its November 28 letter to the independent directors suggested that they appoint an interim CEO from the company’s existing leadership who can take over from Singhania during the duration of their investigation.
Raymond has five independent directors on its board – Mukeeta Jhaveri, Dinesh Lal, Ashish Kapadia, Shiv Kumar and K N Murthy. Their statement read that they “shall not hesitate to proactively initiate measures, the moment required, to protect the interests of all stakeholders”.
Shares of Raymond rose on Friday by 4% to Rs 1,563 on the BSE, snapping a 12-session losing streak in which they declined over 20%. The stock fall started on November 13, when Singhania announced that he is parting ways with his wife of 24 years.
The independent directors have retained former J Sagar Associates’ partner Berjis Desai, “who has no links with the promoters or the company”, to advise them on the matter.
