The warning letters by the stock exchanges to the renewable energy company are about the disclosure submitted by the company on June 8 concerning the resignation of Marc Desaedeleer as Independent Director.
In his resignation letter, Desaedeleer underlined that the corporate governance standards applied by Suzlon did not meet expectations, including situations where communications lacked the level of openness and transparency.
“This is in reference to the disclosure submitted by Suzlon Energy Limited (‘the Company’) on June 08, 2024, with respect to the resignation of Mr. Marc Desaedeleer as Independent Director (‘ID’) of the Company” where-in the resignation letter of the ID highlighted that the corporate governance standards applied by the Company did not meet the expectations including situations were communications lacked the level of openness and transparency and another disclosure dated June 09, 2024 for the Analysts / Investors call to provide certain additional information on the intimation by the Company on 8th June 2024 regarding the resignation of an independent director,” said the letter to Suzlon from NSE.
NSE and BSE have flagged governance concerns at Suzlon Energy despite the disclosure of the Independent Director’s resignation. While Suzlon confirmed the material reason, the exchanges identified areas where stronger corporate governance could have been implemented.
“Over the same period and including recently, several situations occurred where the corporate governance standards applied by the company did not meet my expectations including situations where communications lacked the level of openness and transparency I would have liked to see,” Marc Desaedeleer had said while announcing his resignation.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)