New Delhi: A proxy advisory firm has recommended shareholders of leading textile and fabric maker Raymond vote against the reappointment of Chairman and Managing Director Gautam Singhania to the company's board.
It has demanded an independent investigation into allegations of domestic violence and misuse of funds raised by his estranged wife Nawaz Modi by the company's board.
Additionally, it has also asked Gautam Singhania and Nawaz Modi to step down from the board of Raymond until the divorce-related issues are resolved and the results of the independent investigation are known.
Moreover, proxy advisory firm IIAS has also recommended Raymond shareholders to vote against the proposed remuneration structure for Singhania, claiming that it allows him to pay more than the regulatory limit.
An e-mail sent to Raymond remained unanswered at the time of filing this story.Raymond is holding its annual general meeting on June 27, in which it has proposed the reappointment of Gautam Singhania on the board of the company for a period of five years from July 1, 2024 to June 20, 2029, and his remuneration for the next five years. Three years as CMD.
On the proposal for Singhania's appointment to the board, IIAS informed that Singhania is currently going through divorce proceedings and his wife Nawaz Modi has accused him of domestic violence.
"He has also publicly alleged that he used company funds for personal gain," the report said. The board has not issued any updates since its last statement in December 2023 and it is clear that It is not known whether he has demanded an independent investigation into these allegations or not.,
It further said that now it is up to the shareholders to save the company from this inter-promoter dispute.
“We do not support his reappointment to the board,” the report said.
Whereas in resolution number 5, Raymond has proposed to re-appoint Singhania as Chairman and Managing Director for five years and fix his remuneration which was more than the regulatory limit.
On this, the advisory firm said the proposed remuneration is high for the size and complexity of the business, and not at par with peers.
“The remuneration structure allows him to be paid in excess of the regulatory limit, which could exceed Rs 350 million, based on FY24 profits alone.The board should provide a maximum cap on remuneration, and not leave it open-ended with significant headroom built in for potentially excessive remuneration,” it said.
The proxy advisory firm further said it expected Raymond's board to "conduct an independent investigation into the allegations of domestic violence and misuse of funds raised by Nawaz Modi".
“Divorce proceedings are also ongoing which will require Gautam Singhania to devote time. Until the issues related to the divorce are resolved, and the results of an independent investigation are known, we expect the Board to have both directors – Gautam Singhania and Nawaz Modi – step down from the board,” it said.
It has demanded an independent investigation into allegations of domestic violence and misuse of funds raised by his estranged wife Nawaz Modi by the company's board.
Additionally, it has also asked Gautam Singhania and Nawaz Modi to step down from the board of Raymond until the divorce-related issues are resolved and the results of the independent investigation are known.
Moreover, proxy advisory firm IIAS has also recommended Raymond shareholders to vote against the proposed remuneration structure for Singhania, claiming that it allows him to pay more than the regulatory limit.
An e-mail sent to Raymond remained unanswered at the time of filing this story.Raymond is holding its annual general meeting on June 27, in which it has proposed the reappointment of Gautam Singhania on the board of the company for a period of five years from July 1, 2024 to June 20, 2029, and his remuneration for the next five years. Three years as CMD.
On the proposal for Singhania's appointment to the board, IIAS informed that Singhania is currently going through divorce proceedings and his wife Nawaz Modi has accused him of domestic violence.
"He has also publicly alleged that he used company funds for personal gain," the report said. The board has not issued any updates since its last statement in December 2023 and it is clear that It is not known whether he has demanded an independent investigation into these allegations or not.,
It further said that now it is up to the shareholders to save the company from this inter-promoter dispute.
“We do not support his reappointment to the board,” the report said.
Whereas in resolution number 5, Raymond has proposed to re-appoint Singhania as Chairman and Managing Director for five years and fix his remuneration which was more than the regulatory limit.
On this, the advisory firm said the proposed remuneration is high for the size and complexity of the business, and not at par with peers.
“The remuneration structure allows him to be paid in excess of the regulatory limit, which could exceed Rs 350 million, based on FY24 profits alone.The board should provide a maximum cap on remuneration, and not leave it open-ended with significant headroom built in for potentially excessive remuneration,” it said.
The proxy advisory firm further said it expected Raymond's board to "conduct an independent investigation into the allegations of domestic violence and misuse of funds raised by Nawaz Modi".
“Divorce proceedings are also ongoing which will require Gautam Singhania to devote time. Until the issues related to the divorce are resolved, and the results of an independent investigation are known, we expect the Board to have both directors – Gautam Singhania and Nawaz Modi – step down from the board,” it said.
