RIL Seeks Shareholders' Nod To Appoint Mukesh Ambani As CMD For Next 5 Years

In a latest development, Reliance Industries Ltd (RIL) has sought the approval of shareholders to retain Mukesh Ambani as chairman and managing director of the company for another five years or till 2029. According to reports, Mukesh Ambani has decided to draw nil salary during this tenure.

Reliance Industries stated that Mukesh Ambani's salary for FY 2022-23 was nil, as per the recent annual report.

The billionaire businessman did not draw any salary and profit-based commission for 3 consecutive years starting financial year 2023. Mukesh Ambani opted to draw nil salary since financial year 2021 due to Covid-19 until RIL and all its businesses retain their full earnings potential, stated the reports.

It is worth mentioning that Ambani's yearly remunerations were capped at Rs 15 crore beginning from FY 2008-09 TO FY 2020.

As per a PTI report, 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. He will turn 70 years on April 19, 2027.

According to RIL, "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."

As per a resolution, on the requests of Mukesh 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 further stated, "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."

Meanwhile, last trading price of Reliance Industries stock is Rs 2510.15 per share on BSE. Its 52-week high price is Rs 2635.17 per share and 52-week low price is Rs 2012.14 apiece, respectively. The company has a market capitalisation of Rs 16,98,270.74 crore. RIL shares jumped 26% in last 3-years and soared 132% in last 5-years.

The company for the quarter ended June 30, 2023 declared its consolidated total income at Rs 211,372.00 crore, down 2.08% as compared with its preceding quarter total income of Rs 215,863.00 crore. It announced its net profit after tax in latest quarter at Rs 18,182.00 crore.