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Mukesh may recast Reliance board
November 23, 2004 20:42 IST
A long-standing director on the Reliance Industries board resigned today fuelling further speculation on the goings-on in the country's largest corporate house in the wake of differences between the two brothers, Mukesh and Anil Ambani.
M L Bhakta, said to be a legal expert, quit the board of which he was a member since 1977 but there was no authentic word on why he took the step.
That has triggered speculation that Chairman and Managing Director Mukesh Ambani may recast the board.
Asked about the reasons that prompted Bhakta to leave, Reliance spokesperson Amit Khanna responded with a cryptic, "It is for Mr Bhakta to explain."
Meanwhile, Vice Chairman Anil Ambani continued to remain silent and is yet to respond to his elder brother's statement issued on Monday that father Dhirubhai Ambani had settled all 'ownership issues' during his lifetime.
The possibility of his (Anil) doing so this week is not ruled out.
Sources said some more members may also quit to give Mukesh a free hand for the recast.
A day after going public with his statement on 'ownership differences' in the Reliance Industries, Mukesh on Tuesday said in a communication to all its employees that he as the chairman and managing director is the 'final authority' on all matters concerning the company.
He also sought to clarify that there would be no impact on the functioning of the group by the ongoing controversy.
"There is no question of any effect on the integrity of Reliance. Reliance will continue to grow in strength," sources quoted Mukesh as having said.Asked as to how long it would take to settle all issues, Reliance spokesperson Khanna said: "Everything will be Okay in the next few days."
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