Raymond, a well-known company, is facing a crisis as one of its board members, Nawaz Modi Singhania, has gone public with allegations of assault and financial misconduct against the company’s chairman and managing director, Gautam Singhania. The company’s shares have taken a hit in response to the scandal, dropping by 15% in November.
In response to these allegations, Institutional Investor Advisory Services (IiAS) has written an open letter urging the five independent board members of Raymond to take action and protect the interests of minority shareholders. The letter also calls for an independent investigation into the allegations and suggests that both Nawaz Modi and Gautam Singhania be asked to step aside from their responsibilities as board members for the duration of the investigation.
The advisory firm also poses several key questions to the independent directors regarding the company’s code of conduct, possible criminal liabilities, and the impact of these allegations on the company’s brand. They stress the importance of finding an interim CEO to ensure the smooth operation of the company during this tumultuous period.
It remains to be seen how Raymond and its board will respond to these allegations and whether they will heed the advisory firm’s recommendations in the interest of the company and its stakeholders.
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