Religare Enterprises' executive chairperson Rashmi Saluja ceases to be the director of the company
Agencies
Synopsis
Religare Enterprises announced that Executive Chairperson Rashmi Saluja will cease to be a director effective February 7, 2025, after shareholders rejected her reappointment. The decision follows controversy during the company's AGM, where Saluja allegedly removed the agenda item regarding her retirement by rotation to avoid stepping down, disallowing live voting on the matter.
By ET Online
Last Updated:
Religare Enterprises on Thursday said Rashmi Saluja, the executive chairman of the company, ceased to be director of the board as she did not get approval from shareholders for her re-appointment. The exit of Saluja, who has been executive chairperson of Religare Enterprises, comes amid Burmans' open offer to acquire an additional 26 per cent stake in the company.
The company has appointed Praveen Kumar Tripathi as chairperson until June 30, 2025.
REL investors had accused Saluja of hijacking the company’s annual general meeting (AGM) last week to avoid having to step down as director by deleting the relevant item from the agenda.
At the AGM, Saluja had abruptly dropped the agenda item on her retiring by rotation and reappointment as director, disallowing live voting on the resolution, according to shareholders present at the meeting. The Companies Act mandates retirement by rotation for executive directors but Saluja has insisted that her term runs until 2028. Proxy advisories had recommended against her reappointment at the AGM over governance concerns.
“What’s happening is unprecedented. Never before in corporate India has someone like Rashmi Saluja so brazenly defied the regulations of Registrar of Companies to cling to power, making a total mockery of the established law,” said Sameer Kamdar, founder and CEO of Smart Money and also an investor in the company. “This farce must end if the rule of law is to prevail, otherwise, corporate takeovers in India will become impossible.”
According to the shareholders, Saluja had interrupted the discussion on agenda item number 2–her reappointment–stating that she was not liable to retire by rotation and said the resolution should be ignored. The live e-voting option was also deactivated at this time and, as a result, shareholders present at the meeting could not vote, said persons aware of the matter.
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She ceases to be non-independent director with effect from February 7, 2025, Religare Enterprises said in a regulatory filing.The company has appointed Praveen Kumar Tripathi as chairperson until June 30, 2025.
REL investors had accused Saluja of hijacking the company’s annual general meeting (AGM) last week to avoid having to step down as director by deleting the relevant item from the agenda.
At the AGM, Saluja had abruptly dropped the agenda item on her retiring by rotation and reappointment as director, disallowing live voting on the resolution, according to shareholders present at the meeting. The Companies Act mandates retirement by rotation for executive directors but Saluja has insisted that her term runs until 2028. Proxy advisories had recommended against her reappointment at the AGM over governance concerns.
“What’s happening is unprecedented. Never before in corporate India has someone like Rashmi Saluja so brazenly defied the regulations of Registrar of Companies to cling to power, making a total mockery of the established law,” said Sameer Kamdar, founder and CEO of Smart Money and also an investor in the company. “This farce must end if the rule of law is to prevail, otherwise, corporate takeovers in India will become impossible.”
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According to the shareholders, Saluja had interrupted the discussion on agenda item number 2–her reappointment–stating that she was not liable to retire by rotation and said the resolution should be ignored. The live e-voting option was also deactivated at this time and, as a result, shareholders present at the meeting could not vote, said persons aware of the matter.
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