REL asks directors to reconsider resignations

REL asks directors to reconsider resignations

Tuesday, November 30, 2004 (Mumbai):

Reliance Energy Limited (REL) in a crucial board meeting today requested its six directors, who handed in their resignation on Thursday, to reconsider their decision.

It was also decided that the REL board will separately consult the Reliance Industries board on the company’s future prospects.

The REL board members will stay on until consultations with RIL are complete.

The directors, who include Executive Chairman Satish Seth, JP Chalasani, S C Gupta, K H Mankad, J Ramachandran and Amitabh Jhujhunwala, are believed to be close to REL Chairman Anil Ambani.

Battle of egos

Meanwhile in a separate development, Reliance board member Y P Trivedi today stated that the fight between the two Ambani brothers is a battle of egos.

However, he expressed hope that the differences between Mukesh and Anil Ambani will be resolved soon.

Trivedi, in reply to a question, said he did not think Anil Ambani was sidelined and that he was "vocal and positive" during the meeting.

"I am of the opinion that this e-mail thing should stop. Both the brothers (Mukesh and Anil Ambani) should sit together and sort out the issues with either their mother Kokilaben... or the religious gurus or any of us", he added.

Absolute control

"I had a long chat with Mukesh and also with Anil. Mukesh told me very emphatically that he is aware of the fact that he is the head of the family, and where his mother, sisters and others are there, he doesn't want a dispute in the family. He went to the extent of saying blood is thicker than water," Trivedi said.

He also said as far as control or management was concerned, he did not believe there was any absolute control or absolute management.

"Anybody who is the chairman, I think is answerable to the board and is a representative of shareholders. There is accountability to the shareholders via the board", he said.

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(With PTI inputs)