The Institutional Investor Advisory Services (IiAS) has called on shareholders of Raymond to oppose the reappointment of Gautam Hari Singhania as Managing Director ahead of the company's annual general meeting on 27 June.
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.
"The board should have both directors — Gautam Singhania and Nawaz Modi — step off the board until these matters are settled," IiAS recommended, highlighting concerns over the ongoing intra-promoter dispute.
IiAS also 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.
Currently embroiled in divorce proceedings, Singhania has faced accusations from Modi of domestic violence and misuse of company funds for personal benefits. Despite these allegations, Raymond has proposed to reappoint the 59-year-old as chairperson and managing director for a five-year term starting 1 July.
"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. "It is now for the shareholders to shield the company from this intra-promoter dispute."
Singhania, a board member since 1 April 1990, has maintained his duties, attending all nine board meetings in the last financial year.
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.
