Proxy advisory firms Institutional Investor Advisory Services and Institutional Shareholder Services Inc have urged shareholders to vote against Anant Ambani’s appointment to the board of Reliance Industries.
However, the advisory firms, in a note, recommended voting for Isha Ambani and Akash Ambani. Shareholders of the Mukesh Ambani-owned conglomerate are set to vote on the appointment of the three siblings as non-executive, non-independent directors.
The result will be known on October 30.
The induction of the next-gen Ambanis was part of the succession plan.
The advisory firms cited “governance matters” for their guidance against Mukesh Ambani’s youngest son, Anant.
Ananthas been serving on the boards of Reliance Group companies, including Jio Platforms, since March 2020. He has also been on the boards of Reliance Retail Ventures since May 2022 and Reliance New Energy and Reliance New Solar Energy since June 2021.
“At 28 years of age, his appointment as a non-executive, non-independent director does not align with our voting guidelines,” the note said.
The company has clarified that the three Ambani siblings’ appointment was expected to be effective before December 31, 2023, it said.
Reliance’s founders own over 41 per cent shares in the company, making them the single largest voting chunk. The three resolutions need majority voting to become effective.
The recommendations from ISS and IIAS also point to the evolving expectations from a conglomerate that counts Google and Meta Platforms Inc among the marquee investors in its consumer businesses.
Foreign and local institutions, which often vote based on proxy firms’ recommendations, own close to 40 per cent in Reliance.