Mukesh Ambani, CMD of RIL will become the non-executive Chairman while a non-Ambani may become RIL’s MD for the first time in the company’s history.
While there is buzz around RIL Executive Director Nikhil Meswani’s name, Mukesh Ambani’s confidante and right hand man, Manoj Modi, who is virtually CEO of the company would be a natural choice. The other two EDs, Nikhil’s younger brother, Hital and PMS. Prasad would also be on the probables list. The Meswanis have been on the RIL board since mid to late 90s and are Mukesh Ambani’s cousins. Their father, Rasiklal Meswani was one of the founder directors when Dhirubhai Ambani founded RIL.
Manoj Modi is not on the RIL board and does not hold a designated senior executive position but by all accounts has been one of the most important persons in RIL hierarchy. A questionnaire sent to RIL did not receive any response.
SEBI has mandated to separate the roles of chairman and managing director/CEO of all listed entitled by April 1.
The directive excludes family members and relatives from taking up the MD position. The meaning of relative as defined in Section 6 of the Companies act, 1956 defines the particular relationships. In all such definitions, cousins are not included, which implies that Nikhil and younger brother, Hital Meswani, also Executive Director and both of them having been longstanding members of the RIL board of directors are not precluded from becoming Managing Director. Hital Meswani’s name in the board of directors list appears only after Mukesh and Nita Ambani.
Sebi defers deadline by 2 yrs to separate roles
Sebi has deferred by two years till April 2022 its directive for companies to separate the roles of Chairman and MD in view of demand from the corporates and to keep compliance cost lower amid slowing economy. The top 500 listed entities by market capitalisation were mandated to comply with the requirement of separation of the roles of chairperson and MD or CEO with effect from April 1, 2020. Now, the date of implementation of the regulatory provision has been deferred to April 1, 2022, Sebi said.