Why Reliance’s investors opposed board roles for Saudi businessman and Khaitan
Mint. An email sent to Khaitan seeking comment went unanswered. Shareholders at other large Indian companies have also been voicing their displeasure in recent times, such as when Wipro sought to award former chief executive Thierry Delaporte a ₹36 crore cash severance last month.
In June, shareholders of Dish TV India Ltd rejected the candidature of two independent directors, bringing the number of directors booted out by them to 18 since September 2021. Nestle India’s shareholders recently rejected the company’s proposal to increase royalty payouts to its Swiss parent. At Reliance’s latest shareholder meeting, at least 10 large foreign institutional investors, including the world’s largest sovereign fund and the UK’s largest fund manager, opposed Al-Rumayyan’s reappointment, show documents reviewed by Mint.
About 91% of public investors, who own 38% of Reliance, exercised their vote, while only a fifth of retail and non-institutional shareholders, who own about 13% in the company, participated. “Board members should devote sufficient time to fulfill their responsibilities effectively," reasoned Norway-based Norges Bank Investment Management, the world’s biggest sovereign wealth fund, managing $1.63 trillion of assets as of 31 March. “The chairperson is responsible for leading all aspects of the board’s work and should devote a significant amount of time to fulfill his or her responsibilities effectively.
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