Mukesh Ambani’s decision to appoint his youngest son, Anant Ambani, to the board of directors at Reliance Industries Limited (RIL) has faced criticism from two proxy advisors. These advisors have recommended that the shareholders reject Anant’s appointment to the board, citing concerns about his limited leadership and board experience.
Institutional Shareholder Services Inc. (ISS), an international proxy advisory firm, has specifically raised concerns about Anant Ambani’s limited leadership and board experience, which amounts to approximately six years. They argue that his inexperience raises doubts about his potential contribution to the board. ISS has expressed the view that Anant Ambani, at the age of 28, is too inexperienced to be appointed to the RIL board.
In contrast, the proxy advisors have backed Anant’s siblings, twins Isha Ambani and Akash Ambani, who are involved in running Reliance Retail and Jio Services, two of the most profitable branches of Reliance.
Mukesh Ambani, during the Reliance Annual General Meeting earlier in the year, emphasized his commitment to mentoring his three children and preparing them for leadership roles in the company. He mentioned that his father, Dhirubhai Ambani, had appointed him to the board when he was just 20 years old. This move is seen as a strategic step to ensure a smooth succession plan within the Ambani family and avoid any potential rift between the heirs, similar to what occurred after Dhirubhai Ambani’s passing when the business was divided between Mukesh and Anil Ambani.
Anant Ambani holds a significant position in the energy division of RIL and is expected to take on more responsibilities as a non-independent, non-executive director of Reliance. Despite the criticism from proxy advisors, Mukesh Ambani appears determined to continue preparing his children for leadership roles in the company.
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