Will safeguard interests of shareholders, say Raymond’s independent directors

New Delhi: Independent directors of Raymond Ltd on Friday said they were committed to protecting the interests of shareholders and employees amid a dispute between chairman and managing director Gautam Singhania and his wife Nawaz Modi.

They also announced the appointment of Berjis Desai, a senior independent legal counsel with no links to the promoters or the company, to advise on the developments.

In a filing with the exchanges, the independent directors said they would ensure that “the matrimonial disputes between the two promoter directors do not in any manner affect the capacity of the chairman & managing director to manage the affairs and business of the company”.

This response follows concerns raised by proxy advisory firm Institutional Investor Advisory Services India Ltd (IiAS) amid the public spat between Singhania and his wife.

In an open letter to the independent directors, the proxy firm requested them to assuage the concerns of the investors and other stakeholders, probe the allegations against the promoters, and protect the company.

The independent directors clarified that “neither legal requirements nor corporate governance standards mandate them to investigate such matrimonial disputes”.

Last month, Singhania had announced his separation from his partner of 32 years, Nawaz , a board member as well, through social media posts.

Subsequently, Nawaz demanded 75% of his $1.4 billion net worth for herself and her daughters as a settlement. She also alleged that Gautam has been using company funds for personal benefits.

Singhania, in an email to the board and staff, had ascertained that it is business as usual at Raymond. “Even in these difficult times for me, I assure you that at Raymond, it is business as usual. I am steadfast in creating and delivering value to all our shareholders and ensuring the interests of our employees, customers, and other stakeholders,” he added.