 "Rashmi Saluja’s reappointment sparks fierce board conflict as Burman family attempts to oust her amidst rising tensions at Religare.")
Rashmi Saluja has been reappointed as a director of Care Health Insurance, a subsidiary of Religare Enterprises, with strong support from shareholders. Despite a challenge from the Burman family, who own a significant stake in Religare and wish to remove Saluja, the company confirmed she will stay on. Care Health’s board received legal advice indicating no grounds for her removal. The Burmans’ ongoing dispute with Religare’s leadership escalated after they made a hostile bid for control. Saluja, who has shaped Religare’s recovery over the past six years, expressed concerns that the Burmans’ actions undervalue the company’s achievements. Meanwhile, Religare’s shares saw a significant increase, reflecting investor confidence in Saluja’s leadership.
Rashmi Saluja Reappointed as Director of Care Health Insurance Amid Ongoing Shareholder Tensions
On September 30, 2024, shareholders of Care Health Insurance, an unlisted arm of Religare Enterprises, voted in favor of reappointing Rashmi Saluja as a director. This decision, which comes with a five-year term, was made with a significant majority from the shareholders.
In a recent statement, Care Health Insurance addressed the Burman family’s demand for Saluja’s removal from the board, asserting that following a legal opinion, there were no grounds for her dismissal. The company’s directors have opted to respond accordingly to the Burman family.
Religare Enterprises, which owns a 64 percent stake in Care Health Insurance, played a key role in supporting Saluja’s reappointment. The remaining stakes are owned by employees and Union Bank of India. The Burman family holds a 25.18 percent stake in Religare Enterprises and is currently embroiled in a dispute over the company’s leadership. They have initiated an open offer to acquire an additional 26 percent, which the Religare board has branded as hostile.
Saluja has been at the helm of Religare for the past six years, leading the company through significant challenges after it faced loan defaults under prior management. In a recent interview, she commented on the Burmans’ conflicting stance, stating, “An open offer should not undervalue the company. Initially, they supported our management, but now they wish to assert control while disregarding the contributions that led to our progress.”
As of the latest trading session, shares of Religare Enterprises increased by 5.87 percent, closing at approximately 291 each. The developments surrounding Care Health Insurance and Religare Enterprises are pivotal in shaping the future stability of the company and its leadership dynamics.
For more updates on corporate governance and shareholder matters, stay tuned to our blog.
Tags: Rashmi Saluja, Care Health Insurance, Religare Enterprises, Burman Family, Corporate Governance, Shareholder Meeting, Business News
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Who is Rashmi Saluja?
Rashmi Saluja is the managing director of Care Health Insurance, responsible for the company’s growth and operations. -
Why was her reappointment important?
Her reappointment was important because it shows that shareholders trust her leadership and vision for the company’s future. -
What does Care Health Insurance do?
Care Health Insurance provides health insurance plans to individuals and families, helping them cover medical expenses. -
How does this reappointment affect shareholders?
Shareholders may feel more confident in their investment, as a stable leadership can lead to better business performance. - What can we expect from Care Health Insurance after this decision?
We can expect continued growth and potential new health insurance products or services under Rashmi Saluja’s leadership.
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