New Delhi: Crisis-ridden retail chain Subhiksha has said that it will explore options to induct more independent directors into the company’s board.
The retail chain, whose operations have come to a standstill in the wake of severe liquidity crunch, has already seen the exit of five board members in the last six months.
“The company is a board-managed company and will continue to be so. We will seek an even wider representation on the board so that we gain from the wisdom of all,” Subhiksha Trading Services Ltd Managing Director R. Subramanian said.
“We just need more of them (independent directors) and from different backgrounds maybe and that is something we will do,” he added.
Subramanian said that a broader representation is necessary for securing effective management. “A wider board would prevent against only group’s thinking by bringing different perspectives,” he added.
Among the five board members, who have resigned, three were independent directors while two nominees represented ICICI Venture, which is the second largest stakeholder in the company with 23% stake.
“This is not a promoter-investor issue but one that is related to independent directors and people of a broader spectrum of interests, than even what we had,” he said.
Subramanian had earlier stated that any changes to the board is likely only after the ongoing corporate debt restructuring (CDR) process in Subhiksha, which is expected to be complete by mid-April.
Incidentally, the company has also never commented anything about the exact composition of its earlier or currently operating board, citing its position as a non-listed firm.