Reliance is seeking a shareholder nod to extend Mukesh Ambani’s tenure for 5 more years as Chairman & MD

Reliance Industries Ltd (RIL) is seeking approval from shareholders to re-appoint Mukesh Ambani as the Chairman and Managing Director for another five years, till 2029. He has chosen not to be paid any salary for the period. Ambani, 66, will exceed the company law-mandated 70-year age limit for chief executive officers and will require a special resolution by shareholders to be nominated above that age limit. On April 19, 2027, Ambani will turn 70 years old.

“The company has grown multifold under his leadership, and it is in the best interests of the organisation that he continues to lead the company even after he reaches the age of 70.” As a result, consent of the members (shareholders) is requested for enacting the proposed resolution (to award him another 5-year term) as a Special Resolution,” RIL stated. Ambani has been on the board of Reliance since 1977 and was appointed Chairman following the death of his father and group patriarch Dhiburhai Ambani in July 2002.

On July 21, 2023, Reliance’s board of directors reappointed Mukesh D. Ambani as Managing Director, for a period of 5 years from the expiry of his current term, with effect from April 19, 2024, RIL stated in a special resolution to shareholders. From the fiscal year 2008-09 (April 2008 to March 2009) to FY20, Ambani capped his yearly income at 15 crore; and starting FY21, he elected to sacrifice his salary owing to the COVID-19 pandemic, until the company and all its businesses were fully returned to their earnings potential, said the company.

According to the resolution, “the Board has recommended that no salary or profit-based commission be paid to him for the proposed term from April 19, 2024, until April 18, 2029,” at Ambani’s request. “He shall, however, be entitled to reimbursement of expenses incurred for travel, boarding, and lodging during business trips, including for spouse and attendant(s), 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 resolution stated. “The company shall arrange for security for Ambani and his family members, and the company’s expenses in this regard shall not be considered perquisites.”