Reliance Industries Limited (RIL) has gained approval from its shareholders for the appointment of Isha Ambani, Akash Ambani, and Anant Ambani as non-executive directors. This development was disclosed in a stock exchange filing on Friday.
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Following the announcement ahead of RIL’s Q2FY24 results, shares of the conglomerate jumped 1.8 per cent.
The announcement follows Chairman Mukesh Ambani’s statement at the company’s 46th Annual General Meeting, where he shared his succession planning for India’s most valuable private sector company.
Mukesh Ambani expressed his confidence in his three children, Isha, Akash, and Anant, who are poised to take on significant roles across various business segments within the company.
“Akash and Isha have assumed leadership roles in Jio and Retail, respectively. They have been passionately involved in our consumer businesses since inception. Anant has also joined our New Energy business with great zeal. In fact, he is spending most of his time in Jamnagar,” Mukesh Ambani said at the AGM.
Furthermore, he highlighted that the next generation of Ambanis holds a prominent position within a team of young leaders and professionals who are already achieving remarkable feats at Reliance. The three siblings receive daily guidance and mentorship from the company’s senior leaders, including Mukesh Ambani himself and the board of directors.
While the leadership at Reliance has expressed strong confidence in this succession plan, domestic proxy advisory firm Institutional Investor Advisory Services (IiAS) had suggested that Reliance shareholders vote against Anant Ambani’s appointment to the conglomerate’s board. Additionally, US-based Institutional Shareholder Services (ISS) also recommended a similar stance to investors.
IiAS raised concerns primarily about Anant’s age, being 28 years old, which does not align with their voting guidelines. ISS, on the other hand, pointed to his limited leadership and board experience, spanning just six years.
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Despite the apprehensions raised by the firms, the shareholders of Reliance have given a strong vote of approval to Reliance’s succession plan.
