Shareholders Reject Rashmi Saluja's Reappointment to Religare Board
Rashmi Saluja's reappointment to the board of Religare Enterprises Ltd. (REL) was rejected overwhelmingly by shareholders, with 97.53% voting against the resolution, according to the scrutinizer's report on e-voting published on Sunday.
The e-voting took place from February 4 to 6, ahead of the Annual General Meeting (AGM) on February 7. Despite the setback, Saluja refused to step down, asserting at the AGM that she would not offer herself for reappointment as she is not liable to retire by rotation.
The scrutinizer's report disclosed that 99.65% of institutional investors and 97.23% of non-institutional investors were against her reappointment. Furthermore, the resolution for appointing Kirtane & Pandit as statutory auditor of the company was rejected by as many as 76.97% of shareholders. The audited financial results of the fiscal year ending on March 31, 2024 were approved with a majority of 79%.
During the AGM, Saluja unexpectedly withdrew the agenda item on her retirement by rotation and reappointment, preventing live voting on the matter. While an independent director contested her move, arguing that the item had been lawfully included and should be put to vote, Saluja dismissed the intervention and closed the meeting, instructing that the director’s remarks be recorded.
On February 4, the Delhi High Court rejected Saluja's plea to block the resolution, ruling that her contractual claim of a fixed term until 2028 did not override the Companies Act, which mandates retirement by rotation for executive directors. She later appealed, but the division bench of the Delhi HC declined to grant relief on February 8.
With shareholders and the courts aligned against her, Saluja’s future at REL remains uncertain.