MUMBAI: The Burman’s effort to oust Rashmi Saluja from the board of Care Health Insurance Limited (CARE), a subsidiary of Religare Enterprises Ltd (REL), could not find success as the directors of CARE on Monday agreed that there exists no cause for removal of the current chairperson of the diversified financial company. CARE held its Annual General Meeting on Monday.
However, Kedaara Capital, which holds a 16% stake in CARE Health, voted against the reappointment of Saluja. “The Directors of Care Health Insurance Limited (“CARE”) reviewed the communication dated 27.09.2024 received from the Proposed Acquirers of Religare Enterprises Limited (“REL”) demanding the removal of Dr. Rashmi 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 removal of Dr. Rashmi Saluja and a suitable response is being sent to the Proposed Acquirers accordingly,” stated a statement issued by Care Health Insurance.
The Proposed Acquirers are the Burman family who owns the leading FMCG brand Dabur. The Burmans, the largest stakeholder in REL, were seeking Saluja’s removal as they allegedly said that she is “unsuitable” for reappointment as non-executive chair of Care Health.
As per the sources, employees of REL, who hold around 10% of CARE abstained from voting. Saluja’s re-appointed in CARE is on the expected line given it was an ordinary resolution that required 50% voting in favour. REL, which holds a 64% stake in CARE, voted in favour of Saluja, thus securing a comfortable majority for her reappointment.
The Burmans, who own a 25.18% stake in Religare, have made an open offer to acquire an additional 26% stake in the company. Since the announcement was made about a year ago, the Burmans and the current board of Religare, led by Saluja, have made serious allegations against each other.
