Friday, October 21 2005 16:06 Hrs (IST) - World Time -

Mumbai: In a gesture that would represent the faith a common investor has upon brand 'Reliance', the Extraordinary General Meeting of Reliance Industries Ltd today (Oct 21, 2005) virtually cleared the demerger of group companies, giving nod for proposed changes in the shareholding pattern.

The meeting held under chairmanship of retired Bombay High Court Judge M L Pendse saw more than 65 per cent 'proxy' votes in favour of the scheme.

As per the proposed share holding pattern, every shareholder of RIL would get one share in each of four business entities viz. Reliance Communications Ventures Ltd, Reliance Energy Ventures Ltd, Reliance Capital Ventures Ltd and Global Fuel Management Services Ltd.

"I am happy with this investor friendly solution, in which shareholders are at gain," said a virtually satisfied shareholder D M Karkera, who is member of the company from last two decades.

Expressing satisfaction over this demerger scheme Pravin Thakkar, a senior citizen who holds company shares from more than 30 years said that shareholders are satisfied with this scheme, where we have nothing to lose.

"With most of the shareholders giving their nod, I hope the demerger would be cleared soon," said M P Patankar.

The meeting also saw few shareholders voicing concern over issue of what would be the net worth of the new entities after demerger takes place.

Based upon the shareholder's response to the demerger scheme, a report is expected to be submitted with the Bombay High Court, which had given its nod to the committee formed by RIL on the proposed scheme.

The court had asked RIL to inform about the approval of the demerger scheme. Accordingly, justice Pendse would submit his report to the court.

The Bombay High Court on September 16 had given nod to a committee, headed by justice Pendse, on the demerger of the group companies for settlement between the siblings.

Earlier, in a move to bring about settlement between the Ambani brothers, the RIL headed by elder scion Mukesh moved the Bombay High Court on September 13 seeking its stamp of approval on the demerger.

After the announcement of settlement on June 17, the RIL Board had on August 5 approved the demerger scheme under which all RIL shareholders will get one share each in the four new companies with effective from September one.