Raymond, the textile giant under the leadership of its flamboyant Chairman and Managing Director, Gautam Singhania, is in the headlines for all the wrong reasons. A video of his wife, Nawaz Modi Singhania, sitting outside the gates of JK House, went viral, causing the company’s shares to plummet 15% in November.
Despite Singhania’s insistence that it was business as usual, investors remain unconvinced. Following these events, the proxy advisory firm, Institutional Investor Advisory Services (IiAS), has written an open letter to the five independent members of Raymond’s board. The letter addresses the allegations of assault and financial misconduct made Nawaz Modi Singhania against Gautam Singhania, urging the independent board members to take appropriate action to protect the interests of the company’s stakeholders.
IiAS has questioned the five independent board members’ silence in the wake of these serious accusations and expressed concerns about the erosion in the company’s stock price. The advisory firm has urged the independent directors to communicate with investors and other stakeholders, assuaging their concerns, and to undertake an independent investigation into the allegations.
Furthermore, IiAS has recommended that both Nawaz Modi Singhania and Gautam Singhania take a leave of absence from their roles as board members for the duration of the investigation. The advisory firm has also raised questions regarding the violation of the company’s code of conduct and ethics policy, the possibility of criminal liabilities, and the implications of the allegations on the company’s brand. Additionally, IiAS has suggested the appointment of an interim CEO from within the company to ensure uninterrupted operations during this challenging period.
In conclusion, IiAS has called on the independent directors to prioritize the long-term interests of the company and its stakeholders and protect the company from any potential harm caused its own promoters. This comprehensive response from IiAS emphasizes the importance of addressing the allegations and safeguarding the company’s future amidst a challenging and disruptive period.