InGovern wants investors to vote against Saluja’s reappointment at Religare AGM
InGovern, the proxy advisory firm, has advised shareholders to vote against the reappointment of Rashmi Saluja as a Director on the board of Religare Enterprises given the current turmoil in the company.
Shareholders will vote on various proposals of the company at its annual general meeting (AGM) on February 7.
The AGM was originally scheduled for December 31, but was postponed on a writ petition filed in the Court. However, on January 9, the Court disposed off the writ petition paving way for the AGM.
However, Saluja has moved Delhi High Court to halt voting on her reappointment at the AGM on February 7. The relentless attempts by Saluja to block shareholder votes on her reappointment raise serious concerns about abuse of power and corporate governance at Religare Enterprises, said InGovern.
Four independent directors of Religare have appointed legal counsel to contest her claims, suggesting that the suit may be ‘almost collusive’ and highlighting ongoing investigations involving Saluja. A shift in the perspectives of some independent directors regarding regulatory correspondence has emerged, indicating potential internal conflicts and undermining shareholder confidence, said the proxy firm in a note.
Battle over control
The Court will take up hearing in the case on February 4. The developments come amid a broader control battle in Religare, particularly involving the Burman family, which is seeking to increase its stake in the company from 25 per cent.
Incidentally, the open offer of ₹2,116 crore by Burman family to acquire additional 26 per cent stake in the company closes on February 7.
Religare’s latest move to submit an announcement relating to a counter offer from Danny Gaekwad without due diligence backfires as SEBI rejects the bid, exposing yet another desperate attempt to derail the Burman family’s open offer. This misstep raises serious questions about corporate governance and the integrity of Religare’s leadership amid ongoing shareholder disputes, it said.
Moreover, the recent resignations of key executives, including the Group CFO, two company secretaries and two senior managerial personnel, signal instability in Religare’s leadership, raising alarms about governance and operational continuity, said InGovern.
The failure to disclose changes in independent directors’ views also raises questions about transparency and may lead to distrust among shareholders regarding the management’s integrity.
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