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RIL panel to suggest biz reorganisation
June 18, 2005 17:35 IST
Last Updated: June 18, 2005 17:42 IST
Reliance Industries Ltd -- the Reliance group flagship -- on Saturday authorised its board committee to suggest a 'suitable scheme' of reorganisation in the wake of the settlement of ownership the issues between group chairman Mukesh Ambani and his younger brother Anil, reached earlier in the day.
Announcing the decision after the board meeting, RIL said in a statement that 'in the light of the statement resolving issues between the promoters (the Ambanis) in managing the affairs of the Reliance group of companies, the board decided to consider a proposal to reorganise the businesses as per Kokilaben Ambani's principle of ensuring the highest shareholders value.'
'Reliance Industries Ltd is a diverse organisation with various business interests and therefore any business reorganisation ought to be done keeping in mind the paramount interests of shareholders and the best interest of the company,' the statement said.
'The board, therefore, decided to authorise the Corporate Governance and Stakeholders' Interface Committee to examine in depth all the relevant issues including statutory and legal requirements and suggest a suitable scheme of reorganisation. In this task, the board further empowered the said committee to avail of professional and legal expertise to advise on preparing the reorganisation scheme expeditiously,' the statement added.
RIL is virtually the holding company of the group having controlling stake in all the other entities and the reorganisation would be there to effect the settlement announced by Kokilaben, widow of group's founder chairman Dhirubhai Ambani.
As per the settlement, Mukesh would head RIL and IPCL while Anil would get Reliance Infocomm, Energy and Capital.
The statement was, however, silent on the restructuring of the entire group, including resignation of Anil Ambani as vice chairman and managing director from the RIL board.
The board of RIL, the largest private sector company in India, has a turnover of Rs 73,164 crore (Rs 731.64 billion) and net worth of Rs 40,403 crore (Rs 404.03 billion).
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