Anant Ambani, the youngest son of Mukesh Ambani, the richest man in Asia, is having trouble getting accepted onto the board of Reliance Industries, his father’s business.
The recent Reliance AGM accepted the appointment of Akash, Isha, and Anant Ambani to the board. The recommendation to vote against the motion to add Anant Ambani to the board has come from two consulting firms, Institutional Investor Advisory Services (IIAS) and Institutional Shareholder Services Inc. (ISS).
Anant Ambani’s age has been highlighted by ISS and IIAS as justification for their opposition. Both advisory companies have regulations banning voting for directors who are under the age of 30, and Anant Ambani is currently 28 years old.
Concerns concerning Reliance Industries’ succession plans have been expressed in response to the resistance to Anant Ambani’s appointment to the board. Aged 66, Mukesh Ambani is rumored to be getting ready to transfer over control of the business to his offspring. Anant Ambani is too young and inexperienced, in the opinion of some investors, to be on the board of a business this size and complexity.
Anant Ambani’s selection to the board has been defended by Reliance Industries on the grounds that he possesses the required knowledge and expertise. Anant Ambani has been active in the Reliance enterprises for many years, and the corporation has noted that he has served as a director of various Reliance subsidiaries.
It is uncertain whether the opposition from ISS and IIAS will be sufficient to block Anant Ambani’s appointment to the Reliance Industries board. At the company’s annual general meeting on October 25, the proposal will be put to a vote by the company’s shareholders.