Reliance Industries seeks shareholders approval to appoint Mukesh Ambani as CMD for next 5 years at nil salary
Reliance Industries Ltd (RIL) has sought the nod of shareholders to appoint Mukesh Ambani as chairman and managing director of the company for another five years till 2029. During this period 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, according to a PTI report. Ambani will attain the age of 70 years on April 19, 2027.
“The company has grown multifold under his leadership and it would be in the interest of the company that he continues to lead the company even after he attains the age of 70 years. Accordingly, approval of the members (shareholders) is sought for passing the resolution proposed (to give him another 5-year term) as a Special Resolution," RIL said.
Ambani has been on the board of Reliance since 1977 and was elevated as chairman of the company after the death of his father and group patriarch Dhiburhai Ambani in July 2002, said the report.
Reliance’s board of directors on July 21, 2023 approved “re-appointed Mukesh D. 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," RIL said in the special resolution to shareholders.
Ambani had capped his annual remuneration at ₹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, said the company.
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," the resolution said.
“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 resolution said.
“The company shall arrange to provide security to Ambani and his family members and the expenses borne by the company for the same shall not be considered as perquisites."