Proxy advisory firm asks Raymond Independent Directors to protect company
After the disputes of Gautam Singhania, the Chairman and Managing Director of Raymond with his wife who is also one of the Board members, came to public and his letter to the Board covering up the matter as business as usual, proxy advisory firm Institutional Investor Advisory Services, has written an open letter to the five independent members on Raymond’s board seeking investigation on allegations of Nawaz Modi, by the Board members. His wife and a board member have also alleged that company funds were being used for Gautam Singhania’s personal benefit (CEO excesses) – and that she was acting as a whistle-blower of sorts.
IiAS in its open letter says that “despite such serious and heinous accusations by one board member against another, you have been silent. Investors are worried, which is reflected in the significant erosion in stock price over the past few days. Your silence can be misconstrued – surely you don’t want stakeholders thinking that these accusations are to be tolerated”.
The proxy advisory firm has said in its letter that at the very least, independent directors need to communicate with investors and other stakeholders – assuage their concerns and articulate a course of action that they have taken following these public allegations.
