Suzlon Energy: Independent Director Marc Desaedeleer Resigns

On June 8th, 2024, Mr. Marc Desaedeleer, independent director at Suzlon Energy Limited, submitted his resignation to the Chairman and Board of Directors of the Company. In his letter, he gave his pleasantries to the operational and financial performance of the company for the past 18 months. However, he states that during the same time period, several situations occurred where the corporate governance standards didn’t match his expectation levels. This included instances that portrayed a lack of communication and transparency, which didn’t improve even after discussing it with the chair and the board itself.

About Mr. Marc Desaedeleer:

Mr. Marc Desaedeleer worked in the position of independent director of the Company and was the chairman of the Stakeholders Relationship Committee. He joined the company after seeking early retirement from the Rohatyn Group in July 2018. He had been part of Citigroup Venture Capital Investments Private Equity since 2001. He holds an M.B.A. degree from Carnegie Mellon University and a Master of Science degree from the University of Louvain (Belgium).

Suzlon Energy Ltd. 

Suzlon is an Indian Multinational wind turbine manufacturer, founded in 1995. Headquartered in Pune, the company was founded by Late Chairman and MD, Mr. Tulsi Tanti. Currently, Mr. Vinod Tanti, brother of the late Mr. Tulsi Tanti, serves as the chairman and MD of the company. 

Impact on Stocks:

This comes as big news as Suzlon closes the financial year 20234-24 with its largest book ever at 3.3 GW. Not only that, this news has sprung in time with the merger of Suzlon Energy Ltd. and Suzlon Global Services. The impact of this news is seen in the company’s current share price. The company’s shares, on Monday, fell by 5% to hit a low of Rs. 47.35 on BSE. 

Company’s Response: 

Suzlon Energy CEO, in an analyst meeting, said the issues raised by Mr. Marc were “soft” in nature and process-oriented. He sidelined the issue by stating that the due line of action for the same would be implemented in time. The management also reiterated the same by saying that all legal and financial disclosures were being complied with by the company.

Conclusion: 

As the chairman of the Stakeholders Relationship Committee, Mr. Marc held a very important and strategic position at the company. Therefore, his resignation laid a significant impact on the current share price of the company resulting in a 5% slump.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.