The Board members said this in a representative note to a resolution filed by a minority shareholders’ group to remove them from the company’s Board.
The resolution seeks Fortis’ shareholders approval to replace Brian W. Tempest, Harpal Singh, Sabina Vaisoha and Tejinder S. Shergill from the company’s Board.
Earlier, the healthcare major had disclosed its plans to hold, on May 22, an Extra-ordinary General Meeting (EGM) of its shareholders to approve a proposal by a minority shareholders’ group to induct and remove certain Board members.
“We believe that the current Board due to its association with the company over a period of time is completely capable of taking the company out of its current issues and is also familiar with the workings of the Company and the skill sets of the management,” the Board members said in a note to the shareholders on late Tuesday night.
“In spite of the headwinds from the industry, regulatory and otherwise, the fact of the matter is that FHL is still discharging its obligations in as efficient a manner as possible towards its patients, employees and all shareholders. This is primarily only because of a judicious way of working between the management and the Board, one that empowers decision making, delegates responsibility and demands accountability.”
“A complete change of the entire board at this time will certainly add more turbulence and ambiguity for the Company as well as the management.”
Besides, the development comes just days before the Board is slated to consider the recommendations made by its “expert advisory committee” (EAC) which has been set up to evaluate all binding proposals for fund infusion into the company.
The Board is expected to meet on May 10 to consider the EAC’s recommendations.
The company’s Board has received offers from suitors such as Hero Enterprise Investment Office and the Burman Family Office, Fosun Health Holdings, IHH Healthcare Berhad, Manipal Hospital Enterprises and Radiant Life Care for infusion of funds.