Mumbai: The Institutional Investor Advisory Services (IIAA) has urged shareholders of Raymond to oppose the reappointment of Gautam Hari Singhania as Managing Director ahead of the company's annual general meeting scheduled on 27 June. It has recommended voting against Gautam Singhania appointment as chairperson and managing director of Raymonds until the bitter divorce disputes are resolved.
In a statement, the proxy advisory firm urged the board to remove both Singhania and his estranged wife, Nawaz Modi, from their positions until divorce-related issues are resolved and results from an independent investigation are received. Nawaz Modi has accused estranged husband Gautam Singhania of domestic violence and misuse of company funds for personal benefits.
Raymond Group declined to comment on the IIAA opposing the proposal to reappoint the 59-year-old Gautam Singhania as chairperson and managing director for five years starting from July 1 and asking share holders to vote against the beleaguered businessman on the Raymond board.
"The board should have both directors — Gautam Singhania and Nawaz Modi — step down until these matters are settled," IIAA recommended, highlighting concerns over the ongoing intra-promoter dispute.
The advisory firm has cited concerns about Singhania's proposed remuneration, deeming it excessively high for the size and complexity of Raymond's business and not in line with industry peers.
"The board has not issued an update since their last statement in December 2023, and it is unclear if an independent investigation into these accusations has been sought," IIAS noted.
The upcoming vote will determine if Singhania will continue his leadership role amid the controversy, with shareholders facing a pivotal decision in the governance of Raymond.
