Proxy advisory firm InGovern raises concern over delay in Religare AGM

Proxy advisory firm InGovern has expressed concern over Religare Enterprises postponing its 40th annual general meeting without providing a valid reason. InGovern has requested a Sebi probe into the delay's circumstances, including the decision-making processes and the company's actions regarding share allotments and Employee Stock Ownership Plans (ESOPs). The scrutiny aims to uncover any potential corporate governance issues or regulatory violations. Religare Enterprises Ltd (REL) has deferred its annual general meeting (AGM) by three months to December 2024 from September 2024. This delay is significant because REL executive chairperson Rashmi Saluja was due for re-appointment at the originally scheduled AGM in September. Shareholders are frustrated by this decision as the company has not provided a valid reason for the delay, especially since the financial accounts were already filed with the exchanges. The timing of this delay is critical as Rashmi Saluja, the only non-independent director, requires a re-appointment at each AGM. REL is currently in a battle with Burman family-controlled firms over the management control of the financial services firm. The Burmans, who hold around 25% of REL through four entities, announced an open offer to acquire a 26% stake from public shareholders. Following the open offer bid, the Burmans complained to capital market regulator Sebi for the chairperson's violation of insider trading rules and appointment of the board of her choice. Additionally, one of the Burman family firms filed a case against the Registrar of Companies (ROC) and REL for the delay in AGM for three months. The court has issued notice to the ROC and the company and granted a specific timeline for filing affidavits and rejoinders.