A two-judge bench of the Delhi High Court has rejected an appeal from Rashmi Saluja, chairperson of Religare Enterprises Ltd, seeking to halt a previous ruling that denied her request to prevent the company’s board from voting on her reappointment as a director. Reports indicate that approximately one-third of the financial services company’s investors may oppose Saluja’s reappointment ahead of the upcoming annual general meeting (AGM), significantly diminishing her prospects of remaining in leadership.
During the appeal, senior advocate Sandeep Sethi argued that the AGM agenda infringed upon her contractual tenure, which is secured until 2028, and the conditional approval from the Reserve Bank of India granted on December 9, 2024. However, justices Rekha Palli and Saurabh Banerjee noted that voting had already begun and found no issues with the earlier ruling, leading to the dismissal of Saluja’s appeal. The AGM is set for February 7.
Voting commenced on Tuesday for three resolutions, including Saluja’s reappointment as a director. With this decision, Saluja has exhausted her options to extend her tenure at the financial services firm, leaving her with the possibility of appealing to the Supreme Court. Senior advocate Nalin Kohli, representing four of the five independent directors, mentioned that while courts typically do not stay AGMs, Saluja might still seek relief from the Supreme Court.
Investor sentiment appears to be shifting, with reports indicating that a significant portion of shareholders may vote against Saluja’s reappointment. Additionally, some proxy advisory firms have recommended that shareholders oppose her continuation, citing governance concerns. An email inquiry sent to Saluja and Religare has not received a response as of the latest update.
