ISS Opposes Anant Ambani Reliance Industries Board Nomination

The proposal to add billionaire Mukesh Ambani’s youngest son, Anant Ambani, to the board of the family-controlled Reliance Industries Ltd. has raised concerns about succession planning at India’s largest company by market value. As a result, Institutional Shareholder Services Inc., an international proxy advisory firm, has advised shareholders to vote against it.

The concerns raised by ISS are consistent with the advice given by the Mumbai-based Institutional Investor Advisory Services, or IIAS, which stated in a report dated October 9 that the nomination of the youthful Ambani scion “does not align with our voting guidelines” due to his age of 28. IIAS has endorsed the motions aiming to elect Akash and Isha.

Anant has “the relevant experience and maturity to add value to the board deliberations,” according to Reliance, which did not reply to Bloomberg’s questions. This is because Anant has been groomed over the years by top leadership and has been involved in the conglomerate’s businesses. 

Glass Lewis, another global proxy business, supports Anant’s selection. In an email response, Glass Lewis’s director of Asia-Pacific Research, Decky Windarto, stated, “We do not single out Anant Ambani from the other siblings based on experience.” “We observed that, with comparable professional backgrounds, the other two directors seeking election are only three years older than Anant.”

The succession plan announced by the richest person in Asia hinges on the appointment of Anant and his elder twin siblings as non-executive, non-independent directors. However, proxy advisories indicate that Ambani and the $190 billion group’s “next-generation” leaders will remain a focus for corporate governance observers.

Evolving Expectations

The founders of Reliance are the single largest voting group in the corporation, owning nearly 41% of its shares. For the three resolutions to pass, the majority of votes must be cast. Nearly 40% of Reliance is owned by international and local institutions, who frequently base their voting decisions on the advice of proxy firms. Once the polls are closed, their position will be revealed.

Investors in Reliance believe that as the fossil fuel giant evolves into a consumer and technology giant with significant aspirations in green energy, the leadership change is crucial.In August, Ambani informed investors that he intends to lead the business for quite a long time as he prepares for life as a parent.

As per a business notice shipped off investors, Akash, 31, has been utilized by Dependence Jio Infocomm Ltd. starting around 2014 and fills in as its director right now. As a chief head of Dependence Retail Adventures Ltd., Isha, who is likewise 31, has been leading the retail business’ development. In recent years, both have made presentations to shareholders during the flagship’s annual shareholder meeting.

Also Read: HDFC Bank Q2 Results: Expected Rise in Net Profit, Margin Views

Anant, credited for spearheading the growth of materials and energy firms, particularly in the green energy space, has not yet made a formal presentation to shareholders. According to the corporate response included in the ISS report, Anant “has been part of the decision making for the large strategic investments and partnerships” and has served on the boards of two green energy subsidiaries in addition to serving on Reliance’s executive committee.

Follow Digital Fox Media for latest business news.

The post Anant Ambani Faces Resistance from Proxy Firms for Board Seat appeared first on Daily News.