Amid proxy war RIL board will meet on Dec 27
Monday, December 20 2004 13:49 Hrs (IST) - World Time
New Delhi:
In the midst of the proxy war between the Ambani brothers over the control of Rs 90,000 crore Reliance Empire, the board of the flagship company Reliance Industries, headed by Mukesh Ambani, would meet in Mumbai on December 27.
A meeting of the board is being convened on December 27 to consider the "proposal for purchase of company's own equity shares, that is buyback of shares," RIL said in a communique to the Bombay Stock Exchange today (Dec 20, 2004).
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RIL's Vice Chairman and Managing Director Anil Ambani had written to members of RIL board and the Chairman for convening the meeting at the earliest, to consider (among other things) the company's over Rs 12,000 crore investment in Reliance Infocomm.
The meeting, coming a day before the birth anniversary of RIL's founding Chairman late Dhirubhai Ambani, would be the first since the row between the two brothers came out in the open.
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As per the requirements of the listing agreement, the company sent an intimation to the stock exchanges for the meeting of the board of directors on December 27 to buy back shares, a company official said but declined to give details of the quantum of buyback that RIL would consider.
As per the law, a company could buy back 10 per cent of its paid-up capital in a year.
It was, however, not clear if the RIL board would also consider other issues including resignation of one of its founder directors M L Bhakta and the future of group company Reliance Energy Ltd (REL) where the flagship company has over 50 per cent stake.
At the height of the row over ownership issues, Anil Ambani had shot a letter on December 6 demanding a board meeting of RIL to consider Bhakta's resignation and future of REL.
Anil had told reporters in Mathura yesterday (Dec 19, 2004) that investors' interests in Reliance would be protected and whatever happened in the future would be for the good of investors and employees.
PTI
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