Proxy advisory firm Institutional Investor Advisory Services India Limited (IiAS) has recommended the shareholders of Raymond Ltd vote against a proposal to reappoint Gautam Hari Singhania to its board.

At the forthcoming annual general meeting (AGM), Raymond is seeking shareholder approval to re-appoint Singhania as director, liable to retire by rotation, as an ordinary resolution.

It has also proposed his re-appointment as chairman and managing director for
five years from July 1, 2024 to June 30, 2029 and to fix his remuneration.

This will be done through a special resolution.

IiAS has recommended that shareholders vote against this proposal since it feels that the proposed remuneration will see Singhania receiving in excess of regulatory thresholds.

Singhania was first appointed as the whole-time director on the Raymond board in 1990. He was elevated to the position of chairman and managing director in 2000.

Marital issues

Gautam Singhania and his wife Nawaz Modi Singhania have been locked in a settlement dispute since their divorce announcement in November 2023. Nawaz Modi is also on the board of Raymond as a non-executive director.

“Until the time the divorce related issues are settled, and the results of an independent investigation are received, we expect the board to have both directors — Gautam Singhania and Nawaz Modi — step off the board,” IiAS said.

It added that the Raymond board has not issued an update since their last statement in December 2023, and it is not clear if an independent investigation into these accusations has been sought.

In December 2023, the independent directors of Raymond said they will seek advice from Berjis Desai, senior legal counsel, following the marital dispute.
Nawaz Modi had accused her husband of assault and also alleged that Singhania had used company funds for personal benefit.

The independent directors had then said that they are monitoring the situation arising out of the dispute between Singhania and Nawaz Modi to ensure that it does not affect his capacity to manage the affairs and business of the company.

They also said that while they will act dispassionately, any material development or remedial measures which impacts Raymond will be communicated in a spirit of complete transparency.

On November 13, Singhania had announced over the microblogging platform X that he has separated from Modi.

The announcement by Singhania came after a video surfaced in social media which allegedly showed Nawaz Modi not being allowed to enter a Diwali party last year hosted by Singhania at Thane in Maharashtra.