New Delhi: 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, Bloomberg has reported.
The Institutional Shareholder Services has underscored concerns around succession planning, the report says, highlighting an October 12 note.
“A vote against this resolution is warranted as Anant Ambani’s limited leadership/board experience of around six years raises concerns on his potential contribution to the board,” the organisation said.
The ISS has, however, supported the appointments of Isha and Akash Ambani, both 31, to the board. The polling process, which is by postal ballot and started on September 27, will go on till October 26.
The Institutional Investor Advisory Services, which is based in Mumbai, had earlier made a similar recommendation, focusing on the fact that Anant Ambani is 28 years old.
Reliance has noted that Anant Ambani does have training to fulfil his role.
“Reliance did not respond to Bloomberg’s queries but told the proxy companies that Anant has “the relevant experience and maturity to add value to the board deliberations” given his participation in the conglomerate’s businesses and the grooming he has received from senior leadership over the years. Both ISS and IIAS added Reliance’s response to their reports,” the report says.
Yet another international proxy firm, Glass Lewis, has spoken in favour of Anant’s appointment, refusing to differentiate between him and his slightly older siblings.
In a report, Economic Times had written that the proposed resolution is ordinary, necessitating only a simple majority vote, 51%, from all shareholders, including promoters.
“While promoters held a 50.39% stake in the company, foreign portfolio and domestic institutional investors owned 22.55% and 16.13%, respectively. Others, including retail investors, own about 11%,” the report had said.