Raymond’s independent directors vouch to protect investors against MD’s marital disputes

BENGALURU (Reuters) – The independent directors of Indian textile company Raymond said on Friday they will take measures, if needed, to protect business and stakeholder interests from marital disputes between Managing Director Gautam Singhania and his wife and board member Nawaz Modi Singhania.

This comes after Institutional Investor Advisory Services (IIAS), an Indian proxy advisory firm, this week urged the independent directors to launch an investigation into allegations of assault against Gautam Singhania and communicate with investors and other stakeholders to assuage their concerns.

The independent directors have been meeting over the last few weeks and monitoring the situation as it “affects” the company and minority shareholders, they said.

They “shall not hesitate to proactively initiate measures, the moment required, to protect the interests of all stakeholders,” according to the statement.

However, no law or corporate governance standard requires independent directors to “enquire into, investigate, or delve into the merits of matrimonial disputes, which lie beyond” their remit, they added.

The independent directors have retained Berjis Desai, a senior independent legal counsel, to advise them on the matter.

According to local media reports, Nawaz Modi Singhania alleged that she and her daughter were physically assaulted by her husband in September 2023.

Raymond shares rose on Friday, snapping a twelve-session losing streak, in which they fell more than 21%. The share slump started on Nov. 13, when Singhania announced a separation from his wife on social media platform X, formerly known as Twitter.

Raymond shares, which are up over 5% so far this year, rose 3%, as of 12:32 p.m. IST.

(Reporting by Sethuraman NR in Bengaluru; Editing by Sonia Cheema)