Reliance Industries Ltd Chairman Mukesh Ambani, 63, is planning to set up a 'family council', which will implement a governance structure in India's biggest business house's succession plan. The family council will have representation from all family members, including Ambani's three children, Akash, Isha and Anant. RIL has not officially come out with any statement on this yet.
Besides the three children, the council will comprise an external family member and an adult member of the family. "The move is part of succession planning of Reliance and will include an adult member of the family, the three children, and possibly external members who will act as mentors and advisors," LiveMint, citing people familiar with talks, reported.
Ambani, who reportedly has plans to hand over reins of his sprawling empire to his three children by next year end, wants to set up the council in order to ensure all family members are on board for the conglomerate's future. The council will address conflicts, if any, arising out of succession plan and ensure a smooth transition.
The council has been proposed in lines of how the global wealthy multi-generational families with diversified interests manage their business empires. As the family sets up the council, the three Ambani siblings could eventually end up getting control of the three main verticals each - retail, digital and energy - while maintaining synergies.
All three Ambani siblings hold separate roles within RIL, with Akash and Isha serving as directors of Reliance Jio and Reliance Retail since October 2014. They both are also on the board of Jio Platforms. Ambani's youngest son Anant Ambani was also appointed additional director to the Jio Platforms board in March. Isha also serves as director of Reliance Foundation.
Mukesh Ambani's plan to set up the 'family council' possibly stems from his bitter rivalry with brother Anil Ambani and eventual split-up of the company their father Dhirubhai Ambani founded in 1973. Meanwhile, the RIL share is trading at Rs 2,125.8, Rs 1.8 down, from the previous day close of Rs 2,127.6 on the National Stock Exchange.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today