Mukesh Ambani's son Anant Ambani faces pushback for appointment to Reliance Board

International proxy advisory firm Institutional Shareholder Services Inc. (ISS) has advised shareholders to vote against the appointment of Anant Ambani, the youngest son of billionaire Mukesh Ambani, to the board of Reliance Industries Ltd.

ISS expressed concerns about Anant Ambani’s limited leadership experience, raising doubts about his potential contribution to the board. Th ISS recommendation echoes the sentiments of Institutional Investor Advisory Services (IIAS), which also opposed Anant’s appointment, citing his age as a factor misaligned with their voting guidelines.

Reliance Industries responded to these objections, affirming Anant's suitability for the position, emphasizing his relevant experience and grooming received from senior leadership within the conglomerate. The dissenting voices from ISS and IIAS stand in contrast to Glass Lewis, another proxy firm, which supports Anant’s appointment, highlighting the similarity in professional experiences between him and his elder siblings, Isha and Akash Ambani.

The controversy surrounding Anant Ambani’s potential board seat underscores the evolving expectations of investors, particularly as Reliance Industries diversifies its portfolio with major investments from companies like Google and Meta Platforms Inc.

With the founders owning a significant portion of the company’s shares, the three resolutions related to board appointments require a majority vote to pass. Both local and foreign institutions, which often follow proxy firms’ recommendations, collectively own nearly 40% of Reliance, making their stance crucial in the upcoming vote.

The succession issue is pivotal for Mukesh Ambani, especially as Reliance transforms from a fossil fuel giant to a consumer and technology powerhouse with substantial green energy ambitions. Ambani, who addressed shareholders in August, expressed his intention to lead the company for five more years as he prepares his children for leadership roles.

While Anant focuses on expanding energy and materials businesses, particularly in the green energy sector, his appointment remains a subject of intense scrutiny, highlighting the ongoing scrutiny faced by the next generation of leaders in the $190 billion conglomerate. The outcome of the shareholder vote, closing on October 26, will undoubtedly shape the future trajectory of Reliance Industries Ltd.

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