RIL backs naming Aramco chairman on company board
NEW DELHI: Billionaire Mukesh Ambani’s Reliance Industries Ltd on Wednesday defended the appointment of Saudi Aramco Chairman Yasir Al-Rumayyan on the company board, saying all regulatory criteria for his appointment as an independent director were met, pending shareholder approval on the decision.
The California State Teachers’ Retirement System (CalSTRS), a shareholder of Reliance, had last week decided to vote against the move based on US proxy advisory research firm Glass Lewis’ recommendation.
The voting to confirm Al-Rumayyan’s appointment for a period of three years will end on October 19.
In a stock exchange filing, Reliance said the appointment will “help strengthen the Board’s diversity and skill-sets and benefit Reliance through the transition from oil to chemicals and the aim to achieve Net Carbon Zero by 2035.” The company board had made the appointment based on the recommendation of the Human Resources, Nomination and
Remuneration (HRNR) Committee and pursuant to the provisions of the Companies Act, and the same was announced at the annual shareholders meeting in June.
The appointment has taken effect from July 19, 2021, for a term of three years.
“The law (Indian Companies Act, 2013) and the regulations prescribed by SEBI, the Indian Securities Regulator, lay down stringent criteria for independence for appointment as independent directors of a listed company like RIL. His Excellency Yasir Al Rumayyan satisfies everyone of this criteria laid down in the law and regulations,” the firm said.
CalSTRS decided to oppose the appointment due to Al-Rumayyan’s position in Saudi Arabia’s Public Investment Fund (PIF), as its governor, as well as in Aramco.
PIF has already invested ₹9,555 crore in Reliance Retail and ₹11,367 crore in RIL’s Jio Platforms. Also, Aramco is in talks to buy a 20% stake in Reliance’s oil-to-chemical business.
“The appointment of Yasir Al Rumayyan has no connection with the contemplated transaction with Saudi Aramco,” the firm said.