Reliance Industries Ltd (RIL) is seeking shareholder approval through a special resolution to reappoint Mukesh Ambani as the chairman and managing director director of the company for five years. Ambani will not receive any salary or profit-based commission

The Reliance board on July 21 reappointed Ambani for five years — subject to shareholder approval — with effect from April 19, 2024.

The companies act stipulates that the appointment of directors above 70 years of age should be passed through a special resolution. Ambani now 66 will attain the age of 70 on April 19, 2017
At least 75 per cent of shareholders must vote in his favour.

Ambani had capped his annual remuneration at Rs 15 crore from 2008-09 to 2019-20.

Since 2020-21, he opted to forego his salary because of the Covid-19 pandemic, until the company and all its businesses have fully regained their earnings potential.

Ambani has not received any salary and profit-based commission from 2020-21. Reliance said that he wanted to continue with the arrangement.

At Ambani’s request, the human resources, nomination and remuneration committee (HRNR) and its board have recommended that no salary or profit-based commission be paid to him for his next term from April 19, 2024, till April 18, 2029.

However, the RIL notice said the company would arrange to provide security to Ambani and his family members; expenses on this count will not be considered perquisites.

“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,” it added.

While there is a Z+ security cover for the Ambani family that reportedly consists of 55 personnel including NSG commandos, they also have private security.

Ambani’s residence — Antilla — in South Mumbai saw a bomb scare on February 25, 2021, when an explosives-laden SUV was found near the building.

According to Reliance, it has grown multifold under Ambani’s leadership and it would be in the interest of the company that he continues to lead it even after attaining the age of 70 years.

Swede funds

Reliance Jio has received a $2.2 billion from the Swedish export credit agency to finance equipment for 5G rollout, according to RsIL's annual report. The company has largely procured gears from Swedish firm Ericsson and Finnish company Nokia for 5G.