Proxy advisory firms Institutional Shareholder Services (ISS) and Institutional Investor Advisor Services (IIAS) have advised shareholders to reject the appointment of Anant Ambani, the youngest son of tycoon Mukesh Ambani, to the board of Reliance Industries. While ISS and IIAS support the appointments of the 31-year-old twins, Akash and Isha Ambani, they contend that 28-year-old Anant lacks the necessary experience to serve as a non-executive non-independent director on the board of Reliance, the largest company by market capitalization in India.
An international proxy advisory firm has recommended that shareholders vote against a proposal to appoint Anant Ambani, the son of Mukesh Ambani, on the board of the Reliance Industries, the report said.https://t.co/SQiOcjjEoT#Business
— The Wire (@thewire_in) October 18, 2023
#IiAS recommends voting against #AnantAmbani to board of #RelianceIndustries.
Read more: https://t.co/glVOcYnhK6 pic.twitter.com/op1JAemNlB
— BQ Prime (@bqprime) October 11, 2023
The Ambani family and their loyals, who hold a 49 percent voting stake, are expected to see Anant appointed to Reliance’s board despite shareholder objections. Nonetheless, this dissent regarding Anant’s qualifications highlights potential skepticism surrounding Mukesh Ambani’s succession plan as he strives to convince investors of his vision.
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Ambani is orchestrating a restructuring of Reliance Industries into three interconnected business verticals that can be independently listed: Jio (digital business), Reliance Retail (shopping arm), and the core energy business expanding into renewables, each to be led by one of his three children. Anant is involved in the energy unit, while elder twins Akash helms the telecom domain, and Isha leads the retail.
Earlier in the 2023 AGM, Mukesh Ambani stated that he would mentor the Ambani siblings so that they can provide ‘collective leadership.’ During his speech Ambani recalled how his father appointed him to the board when he was merely 20.
The succession plan seeks to avoid a repeat of the power struggle that erupted between Mukesh and his brother Anil following their father Dhirubhai’s death in 2002, as he did not leave a will.
See Also: Isha, Akash, And Anant Ambani Won’t Take Salaries At RIL, And The Internet Wants ‘Aisi Gareebi’