The auditors for Indian pharma major Ranbaxy, now owned by Japan's Daiichi Sankyo, have drawn attention of the company's board towards remuneration paid to its former chief Malvinder Mohan Singh and current head Atul Sobti.
The company has sought shareholders' approval for Singh's remuneration, which is in excess of the limits permitted by the rules, and the central government's nod would also be sought subsequently.
In their review report for the company's financial for the quarter ended June 30, 2009, the auditors BSR & Co have submitted to Ranbaxy's board of directors that "attention is invited" to the remuneration paid to Singh and also to the appointment and remuneration for Sobti.
The company had sought approval for paying Rs 9 crore and a host of other benefits for a period of little over five months to Singh, while an annual remuneration of not more than Rs 6 crore to Sobti.
Singh resigned as Ranbaxy's Chairman, CEO and MD on May 24, while Sobti was appointed as CEO and MD with effect from the same date. Singh had assumed the role of Chairman, in addition to positions of CEO and MD, on December 19, 2008.
"...Attention is invited to note 11 of the statement of unaudited financial results (provisional), wherein it is stated that requisite approval for appointment and remuneration paid to Singh as Chairman, CEO and MD for the period December 19, 2008 to May 24, 2009 is being sought from the shareholders, the filing added.
