Reliance wants shareholder approval to keep Mukesh Ambani as CEO for five more years
According to a statement released by Reliance on July 21, 2023, the company’s Board of Directors “re-appointed Mukesh D. Ambani as Managing Director, for a period of 5 years from the expiry of his present term.”
Reliance Industries Ltd., the most valuable firm in India, has asked shareholders for permission to extend Mukesh Ambani’s current five-year term as chairman and managing director of the company through 2029. During this time, he has chosen to forgo receiving any compensation.
Ambani, who is 66 years old, will surpass the company law’s mandated age limit of 70 for the position of chief executive, necessitating a special resolution by the shareholders to appoint him beyond that limit.
Reliance asked shareholders to approve a special resolution that would have appointed Ambani as the company’s CEO through April 2029.
Ambani joined Reliance’s board in 1977 and was promoted to chairman of the organisation following the passing of his father, the group’s founder, Dhiburhai Ambani, in July 2002.
Reliance stated in its special resolution that its Board of Directors “re-appointed Mukesh D. Ambani as Managing Director, for a period of 5 years from the expiration of his present term, i.e. with effect from April 19, 2024,” on July 21, 2023.
According to the statement, Ambani limited his annual compensation to Rs 15 crore from the fiscal year 2008–09 (April 2008–March 2009) through the fiscal year 2020; however, beginning in the fiscal year 21 (FY21), he decided to forgo his salary until the company and all of its businesses had fully recovered from the COVID–19 pandemic.
As a result, starting in FY21, he has not received any salary or profit-based commission payments for three years in a row.
According to the resolution, Ambani requested that he not receive a salary or profit-based commission during the proposed period, which runs from April 19, 2024, to April 18, 2029.
However, according to the special resolution, “He shall be entitled to reimbursement of expenses incurred for travel, boarding, and lodging, including for spouse and attendant(s) during business trips, and provision of car(s) for use on company business.” It also stated that communication costs at home would be reimbursed at actual costs rather than being viewed as perquisites.
“The Company shall make arrangements to provide security to Ambani and his family members and the expenses borne by the Company for the same shall not be considered as perquisites.”
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