Dr. Malikarjun Goda, Chief Compliance Officer of Religare Enterprises, has tendered his resignation and has been relieved of his duties with immediate effect, the company said in a statement.
The resignation comes as company executives try to stop a Burmese family from taking over the company.
Amid the infighting, several investors filed a lawsuit in the Madhya Pradesh High Court against the holding of the shareholders’ meeting and the public offer proposed by the Burmese family.
Last week, the Parliamentary High Court threw out the petition, paving the way for the General Assembly.
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The public offering for Religare Enterprises was postponed due to legal disputes, during which the company’s management, led by chairman Rashmi Saluja, expressed concerns about price and Burmese status.
According to proxy voting advisory firm InGovern, the shareholder meeting is important given the length of Saluja’s tenure as he is up for re-election. In her capacity as the only non-independent director, she must be reappointed at each general meeting, and the delay is significant.
The tender offer guarantees an investment of Rs 2,116 crore and the offer price has been fixed at 235 ₹35 per share. If the tender offer is successful, the Berman family will own more than 50% of Religare Enterprises and control will be transferred to Dabur’s promoters.
Burma has already received approval for the tender offer from the Competition Commission of India, Insurance Regulatory and Development Authority of India, stock exchanges, RBI and SEBI.
“The recent inexplicable changes in the positions of some of the independent directors and the resulting views and instructions communicated regarding the regulatory response have made it impossible for me to continue with the company. Please accept my resignation,” Goda said in his resignation letter.
