Advisory Firms Question Anant Ambani’s Reliance Board Seat
In a crucial development for the succession plan of India’s largest conglomerate, Reliance Industries, two prominent advisory firms have raised concerns about the appointment of Anant Ambani, the youngest son of Mukesh Ambani, to the company’s board. Institutional Shareholder Services Inc (ISS), an international proxy advisory firm, and Mumbai-based Institutional Investor Advisory Services (IIAS) have cited Anant Ambani’s age as the primary reason for not endorsing his appointment.
ISS expressed reservations, noting that Anant Ambani’s “limited leadership/board experience of around six years” did not meet their standards, according to a report by Bloomberg. Meanwhile, IIAS, in an October 9 report, argued that at 28 years of age, Anant Ambani’s appointment did not align with their voting guidelines. Both advisory firms had previously supported the appointment of Anant’s elder siblings, Isha and Akash Ambani, to the board.
Reliance Industries responded by asserting that Anant possesses the “relevant experience and maturity” to contribute to board deliberations, citing his involvement in the conglomerate’s businesses and the guidance he has received from senior leadership.
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Notably, Glass Lewis, another proxy advisory firm, has voiced support for Anant Ambani’s appointment. Glass Lewis director Decky Windarto argued that Anant’s experience should not be singled out as an issue, highlighting that two other board candidates with similar professional backgrounds are up for election and are only slightly older than Anant.
The shareholder vote, which is set to conclude on October 26, is of utmost importance in shaping the future leadership of Reliance Industries. Mukesh Ambani had previously revealed plans to mentor his three children, Isha, Akash, and Anant, as they take on roles as non-executive directors. This move is contingent upon shareholders’ approval.
Isha and Akash Ambani have already assumed significant roles within the conglomerate, with Isha driving the expansion plans of Reliance’s retail arm and Akash being named Chairman of Reliance Jio Infocomm last year. Anant, meanwhile, is actively involved in the new energy business, further reflecting the family’s growing influence within Reliance.
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