The Hindu : Business : There is no ambiguity in Dhirubhai's legacy: Mukesh

Online edition of India's National Newspaper
Wednesday, Nov 24, 2004

Business

Business

There is no ambiguity in Dhirubhai's legacy: Mukesh

MUMBAI, NOV. 23. A day after going public with his statement on `ownership differences' in Reliance Industries, the group Chairman and Managing Director, Mukesh Ambani, said he was the `final authority' on all matters concerning the company.

"There is no ambiguity in his [Dhirubhai Ambani's] legacy that CMD is the final authority on all matters concerning Reliance,'' he said in an e-mail message to over 80,000 employees of the group.

"Our founder-Chairman, the late Dhirubhai Ambani, had taken all necessary steps to separate ownership from management and had settled all issues during his lifetime,'' Mr. Mukesh said in the message.

He also sought to clarify that there would be no impact on the functioning of the group by the ongoing controversy over reported differences with his brother Anil Ambani. "There is no question of any effect on the integrity of Reliance... Reliance will continue to grow in strength,'' sources quoted Mr. Mukesh as saying.

Reliance's commitment to break new grounds in global leadership in various initiatives stood firm, he added.

Mr. Anil Ambani, who was said to be planning to respond to Mr. Mukesh's statement, could not be contacted despite several attempts.

In a bid to quell a raging controversy in the market and corporate world, Mr. Mukesh issued a statement yesterday saying that his remarks on a private TV Channel last week were `torn out of context' and that their father had `settled all issues pertaining to Reliance within his lifetime.'

Board member quits

A long-standing director on the Reliance Industries' board today resigned, fuelling further speculation on the goings-on in the country's largest corporate house in the wake of differences between the two brothers, Mukesh Ambani and Anil Ambani.

M. L. Bhakta, said to be a legal expert, quit the board of which he was a member since 1977 but there was no authentic word on why he took the step. That triggered speculation that the Chairman and Managing Director, Mukesh Ambani, might recast the board.

Meanwhile, the Vice Chairman, Anil Ambani, continued to remain silent and is yet to respond to his elder brother's statement issued yesterday.

PTI

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