Business & Investment

RIL shareholders have passed a resolution to add Saudi Aramco’s chairman to the board

The limited liability company said Thursday that it had passed a resolution appointed by the required majority of shareholders. Chairman Yasel al-Lumayan as an independent director of the conglomerate’s board of directors.

In a statement, the Reliance said more than 98% of the total votes cast in the resolution were in favor of the addition of Arurumayan. Arurumayan has been Governor of the Saudi Arabia Public Investment Fund since 2015. In September, Ltd said Yasir Al-Rumayyan meets all regulatory criteria for appointment as an independent director.

The California Teachers’ Retirement Fund (CalSTRS, a shareholder of the Indian conglomerate, has decided to vote against the move, based on the recommendations of US agency advisory research firm Glass Lewis, Business Standards reported last week. ..

Voting to confirm Al Lumayyan’s three-year appointment ended on October 19.

The appointment “strengthens the diversity and skill set of the board, benefits trust through the transition from petroleum to chemicals, and aims to achieve zero net carbon by 2035,” RIL said last month. rice field.

“HE Asir Al Rummayyan is a seasoned global business leader. He is the non-executive chairman of. (SA). His experience includes working for more than 25 years at some of Saudi Arabia’s prominent financial institutions, including the governor of the Saudi Public Investment Fund. His experience includes international business and governance experience, financial and global energy industry expertise, and insights into new technology-driven business models. This will strengthen the diversity and skill set of the board, benefit reliance through the transition from petroleum to chemicals, and aim to achieve zero net carbon by 2035, “reliance said in a statement. I am.

Lumayan’s appointment had nothing to do with the upcoming deal with Saudi Aramco, and the Reliance was trying to clarify.

“The appointment of Ambassador Yassel Rumayan has nothing to do with the upcoming transaction. In addition, with shareholder approval, RIL’s O2C business will be split into subsidiaries and Saudi Aramco will participate in the shares of the O2C subsidiary in accordance with the terms of the proposed transaction. O2C subsidiaries may place Saudi Aramco candidates to protect their interests … RIL has adhered to corporate governance best practices in all matters, including the appointment of independent directors.

CalSTRS has decided to oppose the appointment of Yasir Al-Rumayan because of his position at PIF and at Aramco.

PIF has already invested Rs 9,555 in Reliance Retail and Rs 11,367 in RIL’s Jio platform. Aramco and RIL are discussing another equity transaction that includes 20% of Reliance’s oil-to-chemical business.

According to the website, on June 30, 2020, CalSTRS held 5.3 million shares, paid in full and in part for RIL. CalSTRS is the second largest public pension fund in the United States with total assets of approximately $ 318.4 billion as of August 31, 2021.

Opposition to CalSTRS is Glass, Lewis & Co, a US agency advisory services company. Is based on a report that claims to advise more than 1,300 clients. According to Glass, Lewis & Co, its clients include the majority of the world’s largest pension schemes, investment trusts and asset managers, which manage over $ 40 trillion in assets in total.

At RIL’s 44th Annual Meeting (AGM), Ambani said: Learn more about our international plans in the future. “

Glass, Lewis & Co. According to Arurumayan, he is not eligible to become an independent director because he plays an important role in the operation of Aramco and PIF. Under Indian law, an Independent Director may not play a role in a company that has a business or stock partnership with a company that intends to appoint him or her. Arurumayan’s “independence” on the RIL board of directors has been questioned as PIF holds shares in a subsidiary of RIL and Aramco seeks to purchase shares in Reliance OTC Ltd.

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RIL shareholders have passed a resolution to add Saudi Aramco’s chairman to the board RIL shareholders have passed a resolution to add Saudi Aramco’s chairman to the board

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