Religare Enterprises Ltd. said on Monday that its board has commissioned a governance review of the company and its subsidiaries—Religare Finvest Ltd. and Religare Housing Development Finance Corporation Ltd.
The review will examine past operating practices, recommend improvements to systems and controls, and identify potential instances of misconduct involving current and former employees, the company said in a statement to the exchanges, adding that it has engaged law firm Trilegal, with Grant Thornton Bharat LLP providing assistance.
"The objective is to review the past operating practices, suggest improvements around systems & controls for future implementation and to identify any potential instances of misconduct by certain current and/or ex-employees of the aforementioned companies," Religare said in a statement.
The decision followed a leadership change at Religare Enterprises, with the Burman Group acquiring control of the company last month after a prolonged dispute involving ousted chairperson Rashmi Saluja and US-based investor Danny Gaekwad.
The Burman family, which controls FMCG major Dabur India Ltd., emerged as the front-runner to take over Religare after initially seeking to increase its stake in September 2023. More than a month ago, shareholders rejected a proposal to reappoint Saluja as executive chairperson, with nearly 98% voting against her return. Following her exit, non-executive independent director Praveen Kumar Tripathi was appointed chairperson.
Additionally, the board has identified a cash flow gap in the coming months and has decided to approach new promoters, the Burman Group, for immediate funding support. The board has recommended a short-term inter-corporate loan from the promoter group or its associate entities to address the funding requirement.
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