Saturday, June 18 2005 17:47 Hrs (IST) - World Time -

Mumbai: Reliance group flagship RIL today (Jun 18, 2005) authorised its Board Committee to suggest a "suitable scheme" of reorganisation in the wake of the settlement of ownership 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 "the Board has 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."

Stating that RIL was a diverse organisation with various business interests, the statement said that 'business reorganisation' therefore ought to be keeping in mind the paramount interests of shareholders and the best interest of the company.

Towards this, the Board empowered the Committee to avail of professional and legal expertise to advise on preparing the "reorganisation schemes expeditiously".

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 with a turnover of Rs 73,164 crore and net worth of Rs 40,403 crore, said it had decided to "consider a proposal to reorganise the business as per Kokila D Ambani's principle of ensuring the highest shareholders value."

Putting on record its "deep appreciation and sense of gratitude" for the tireless and painstaking efforts of Kokilaben, the Board expressed happiness at the amicable settlement arrived amongst the promoter family members.