• Saturday, February 24, 2024

Business

Raymonds MD’s marital dispute: Independent directors vow to protect investors

They also highlighted that neither law nor corporate governance standards mandate them to delve into the merits of matrimonial disputes beyond their designated scope.

Raymond Group managing director Gautam Singhania (Photo by INDRANIL MUKHERJEE/AFP via Getty Images)

By: Shubham Ghosh

The independent directors of Indian textile giant Raymond on Friday (1) declared their commitment to safeguarding business and stakeholder interests amid marital disputes involving managing director Gautam Singhania and board member Nawaz Modi Singhania.

In response to a call from Institutional Investor Advisory Services (IiAS), an Indian proxy advisory firm, urging an investigation into assault allegations against Gautam Singhania, the independent directors emphasized their ongoing vigilance in monitoring the situation’s impact on the company and minority shareholders.

Read: Raymond patriarch devastated as family dispute takes toll on company

The directors affirmed their readiness to proactively take necessary measures to protect the interests of all stakeholders, while highlighting that neither law nor corporate governance standards mandate them to delve into the merits of matrimonial disputes beyond their designated scope. They have engaged the services of Berjis Desai, a senior independent legal counsel, to provide guidance on the matter.

Reports from local media detailed allegations by Nawaz Modi Singhania of physical assault against her and her daughter by Gautam Singhania in September.

Raymond shares, which had experienced a 21 per cent decline over 12 consecutive sessions starting from November 13 when Singhania announced his separation on the social media platform X, saw a rebound on Friday.

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