Anil ceased to be director from January 20: IPCL
Thursday, May 5 2005 21:08 Hrs (IST) - World Time - 
New Delhi:
In a bid to end the controversy over the resignation of Anil Ambani, as its vice chairman and director, IPCL has informed the Mumbai Stock Exchange that he had ceased to be a director when the Board "considered, noted and took on record" his resignation on January 20.
Urged by the Board at the same time to reconsider the resignation, Anil had set pre-conditions, which were not acceptable to IPCL Board, which is chaired by his elder brother Mukesh.
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In a communication sent to the exchange late last month (April), IPCL said "By its letter dated January 21, 2005, the company wrote to Anil Ambani that the Board did not accept the conditions set by him but decided to request him to reconsider his resignation.
"Anil Ambani in his reply dated January 27 addressed to the Board, appreciated the Board's gesture but did not reconsider his decision. These letters were noted by the Board at the next meeting held on March 30, 2005," the company said in its communication dated April 26, it was revealed today (May 5, 2005).
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The Board at its meeting on March 30, according to knowledgeable sources, felt that Anil's response could not be considered, as it did not express his desire to "reconsider" his decision.
On the issue of resignation, Anil Ambani had said that just before the Board meeting of flagship company RIL on April 27, that he was not informed if the IPCL board had decided on March 30 to ask him for reconsideration and was not sure if the same had been communicated to stock exchanges.
In view of media speculation, "the Board at the meeting held today (April 26), reiterated that the resignation tendered by Anil Ambani had been considered, noted and taken on record by the Board at their meeting held on January 20," the communication said.
"The Board request for reconsideration of the resignation and the response of Anil Ambani with preconditions does not change the fact of his having ceased to be a director on tendering his resignation," it said.
Giving sequence of the events, beginning with Anil's resignation letter dated January 3, the IPCL letter to Bombay Stock Exchange said the Board had, however, requested him to reconsider resignation in January "so that he can be reappointed."
Stating that this decision of the Board of IPCL was also communicated to the Stock exchanges on January 20, the communication further stated that company's Article of
Association does not contain any provision requiring acceptance by the Board of a resignation tendered by a Director.
It may be recalled that following January 20 meeting, Anil had written to the IPCL Board saying "I have mentioned issues regarding corporate governance, transparency,
disclosures related to party transactions and conflict of interest, affecting interests of all shareholders of our company, and concerning business dealings of Anand Jain,
Director on IPCL Board, and his relatives and/or associates, vis-a-vis IPCL and RIL.
"I would be grateful to receive the views and comments of the IPCL Board on these issues," Anil said adding "an appropriate and constructive forward path can then be mutually agreed."
PTI
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