Will Mukesh Ambani's Son Anant Ambani Pass Succession Plan?

In what seems to have underscored concerns around Reliance Industries' succession plan, two advisory firms have reportedly recommended shareholders to vote against the proposal to appoint Anant Ambani, youngest son of Mukesh Ambani, to the board of the family-controlled Reliance Industries Ltd.

According to a Bloomberg report, Institutional Shareholder Services Inc., an international proxy advisory company, has recommended that shareholders vote against the proposal to appoint billionaire Mukesh Ambani's youngest son, Anant Ambani, to the Reliance Industries board.

"A vote against this resolution is warranted as Anant Ambani's limited leadership/board experience of around six years, raises concerns on his potential contribution to the board," ISS said in an October 12 note, which it shared with Bloomberg.

It has supported the board appointments of elder siblings, Isha and Akash Ambani - both 31 - in the shareholder vote that will close on October 26. Anant is 28 years old.

Earlier, in an October 9 report IIAS had said that at 28 years of age, Anant Ambani's appointment is not in line with the voting guidelines. Mumbai-based IIAS has supported the proposals seeking to elect Isha and Akash.

Reliance did not respond to Bloomberg's queries but told the proxy companies that Anant has "the relevant experience and maturity to add value to the board deliberations" given his participation in the conglomerate's businesses and the grooming he has received from senior leadership over the years. Both ISS and IIAS added Reliance's response to their reports, said the report.

The shareholder vote that will end on October 26 is of huge significance to the succession plan of Mukesh Ambani. At the recent annual general meeting (AGM), Ambani announced the appointment of his three children, Isha, Akash, and Anant, to the board of the group as non-executive directors, conditional on the approval of the shareholders.

Reliance's founders own over 41% shares in the company, making them the single largest voting chunk. Foreign and local institutions, which often vote based on proxy firms' recommendations, own close to 40% of Reliance.