RIL seeks shareholder nod to appoint Ambani as head for another five years

New Delhi: Reliance Industries Ltd has sought shareholder’s approval to give Mukesh Ambani another five-year term as chairman and managing director of the company till April 2029 — a period during which he has opted to draw nil salary.

Ambani, 66, will cross the company law-mandated 70 years age for the chief executive of the company and requires a special resolution by the shareholders for him to be appointed beyond that age bar.

Ambani has been on the board of Reliance since 1977 and was elevated as chairman after the death of Dhiburhai Ambani in July 2002.

In the special resolution posted to shareholders, Reliance said its Board of Directors on July 21, 2023 approved “re-appointed Mukesh Ambani as Managing Director, for a period of 5 years from the expiry of his present term, i.e. with effect from April 19, 2024.”

Ambani, it said, had capped his annual remuneration at Rs 15 crore from financial year 2008-09 (April 2008 to March 2009) to FY20; and since FY21, he opted to forego his salary, due to COVID-19 pandemic, until the company and all its businesses were fully back to their earnings potential.

At the request of Ambani, “the Board has recommended that no salary or profit-based commission be paid to him for the proposed term from April 19, 2024 till April 18, 2029. “He shall, however, be entitled to reimbursement of expenses incurred for travelling, boarding and lodging including for spouse and attendant(s)

during business trips and provision of car(s) for use on company’s business and communication expenses at residence shall be reimbursed at actuals and not considered as perquisites,” the special resolution said.