Gautam Hari Singhania has been appointed as the Executive Chairman of Raymond Lifestyle after the textiles and fabric maker's shareholders approved the appointment proposal.
The special resolution for the "appointment of Gautam Hari Singhania as an executive chairman" of the company and to fix his remuneration received 86.85 per cent of the total votes cast at the Annual General Meeting (AGM).
The resolution was passed with requisite majority, according to the Scrutinizer's Report filed by the company to the bourses on Wednesday evening.
Besides, the shareholders of the company also approved eight other special resolutions regarding the appointment of Independent Directors and Sunil Kataria as the Managing Director of the company.
The Companies Act 2013, mandates that a special resolution needs to be passed by a super majority, which refers to at least 75 per cent of the members voting in favour of it.
Raymond Lifestyle was recently listed on exchanges following the demerger of the lifestyle business from Raymond Ltd. It was listed on stock exchanges on September 5 and Singhania was continuing in both entities.
Recently proxy advisory firms as Empowerment Services (SES) and Institutional Investor Advisory Services India (IiAS) had urged the shareholders of Raymond Lifestyle to vote against the resolution for the appointment of Singhania as Chairman of the company.
According to reports, both the proxy advisory firms had raised concerns over remuneration policies and potential reputational risks.
The e-voting process for the AGM, which was held remotely concluded on Wednesday.
Later, commenting on the development, a Raymond Lifestyle Spokesperson said the shareholders of Raymond Lifestyle have demonstrated full confidence and voted for Gautam Hari Singhania as the Chairman and Sunil Kataria as the Managing Director of the company.
"This development has reinforced the fact that the promoter is fully committed towards the organisation’s growth and creating shareholder value," he said.
The promoter Sighania family and their affiliates own a 54.68 per cent share in Raymond Lifestyle.
On December 5, shares of Raymond Lifestyle Ltd on BSE closed trading 1.69% higher at Rs 2,056 apiece.
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