The board of directors of Care Health Insurance, a subsidiary of Religare Enterprises, on Monday rejected the Burman family’s proposal to remove Rashmi Saluja as a director of the company.
In a statement, Care Health Insurance said its directors had reviewed the communication received on September 27 from the proposed acquirers of Religare Enterprises, which demanded the removal of Saluja from the board of directors of Care.
“In light of a legal opinion received by Care, the directors agreed that there exists no cause for the removal of Saluja, and a suitable response is being sent to the proposed acquirers accordingly,” the statement said.
This follows earlier reports that the Burman family, the largest shareholder of Religare Enterprises, had written to the company, its subsidiary Care Health Insurance, and investor Kedaara Capital, seeking the removal of Rashmi Saluja from the insurer’s board ahead of its AGM.
In a letter dated September 27, the Burmans alleged that Saluja is “unsuitable” for reappointment as non-executive chair of Care Health, citing recent actions taken against her by investigative and regulatory agencies. Care Health’s 17th annual general meeting was scheduled for Monday, with her reappointment being one of the key items on the agenda.
In the letter, the Burmans cited a first information report (FIR) registered against Saluja on September 6 by the Directorate of Enforcement (ED) on charges of criminal conspiracy and cheating, as well as an Enforcement Case Information Report under the Prevention of Money Laundering Act. They also cited a show cause notice from the Securities and Exchange Board of India (SEBI) regarding stock market transactions that allegedly violated insider trading rules, according to reports.”
The Burman family, who holds 26% of Religare, is currently in conflict with the board over control of Religare Enterprises. They have made an open offer to acquire an additional 26% stake in the company, which is in the process of obtaining regulatory approvals.
From: financialexpress
Financial News
