Mukesh Ambani, the world’s fourth-richest man, is fixing a ‘family council’ to implement a collective governance structure to manage the family’s sprawling business empire as a part of the group’s succession-planning process, two people directly conscious of the discussions said.
The council will provide equal representation to all or any relations , including the three Ambani siblings—Akash, Isha and Anant—who are expected to require over the reins of Reliance Industries Ltd (RIL), the people said, seeking anonymity because the talks are private.
“The move is a component of succession planning of Reliance and can include an adult member of the family, the three children, and possibly external members who will act as mentors and advisors,” said one among the 2 people. “The council will play a crucial role in deciding at RIL. This forum will provide representation to every branch within the agreed manner and help take critical decisions that relate to the family or its businesses.”
Ambani, 63, aims to finish the succession planning process by the top of next year, the person added.
By fixing the council, Ambani, now worth quite $80 billion, wants to make sure that the family features a shared vision of RIL’s future, and members have a standard forum where conflicts, if any, are often resolved when subsequent generation takes over the reins of the corporate . Ambani is perhaps drawing some lessons from his rivalry together with his brother after the death of their father, Dhirubhai, who founded RIL in 1973. The Ambani brothers eventually split their father’s businesses.
“The proposed family council, which can emulate other wealthy families, especially multigenerational families with controlling interests in diversified businesses, also will act as an executive body to coordinate among the relations on various matters. it’s expected that the three Ambani siblings will eventually head separate verticals within RIL like retail, digital and energy. A family council will ensure synergies are maintained,” said the person cited above.
RIL didn’t answer emailed queries sent on Thursday till the time of getting to press.
In October 2014, Akash and Isha Ambani joined the boards of Reliance Jio Infocomm Ltd and Reliance Retail Ventures Ltd as directors. Anant, the youngest sibling, was appointed to the board of Jio Platforms as a further director in March. Akash and Isha also are on the board of Jio Platforms. Isha Ambani is additionally a director at Reliance Foundation Institution of Education and Research, which is fixing the Jio Institute. While Akash and Anant graduated from Brown University within the US, Isha has majored in psychology and South Asian studies from Yale University .
In a series of rejigs in recent years, Mukesh Ambani, his wife Nita, and therefore the three children have rearranged their shareholdings in RIL by acquiring shares from one another . In March, promoters along side two group firms—Tattvam Enterprises LLP and Samarjit Enterprises LLP—acquired 3.2% shares of RIL from Devarshi Commercials LLP, another group entity.
“The transaction is a component of a restructuring of promoter group holding by inter-se transfer among the persons belonging to promoter and promoter group,” RIL had told exchanges during a filing. Mint had reported that every member of the Ambani family would hold an equal number of shares in RIL after the transaction