Reliance Energy, headed by Anil Ambani, on Tuesday sought amendments in its Articles of Association through a postal ballot to empower parent company Reliance Industries, chaired by Mukesh Ambani, to nominate the chairman and vice-chairman of the power company.
In a communication to Bombay Stock Exchange, REL sought to make a provision that as long as the Reliance Group of Companies and its associates hold over 26 per cent paid up voting equity shares, and are the single largest shareholding group, they shall have the right to appoint majority of directors on the REL board.
In its notice, REL wanted the existing provision to be substituted with a provision that 'RIL shall designate one of the directors to be the chairman of the board and may also designate one of the directors to be the vice-chairman of the board; and RIL shall determine the period for which each of them is to hold such office and the chairman and the vice-chairman so designated shall not be liable to retire by rotation.'
It was, however, not clear as to which existing provisions in the Articles of Association the company now sought to amend.
In its notice to BSE under section 192 A of the Companies Act, REL desired that it wanted to transact the 'special business' by the members of the company through postal ballot and to pass the same with or without modification in the 'Articles of Association of the company.'
For this purpose, REL board, at its meeting on November 30, 2004, appointed chartered accountant Bhupendra Bangari as scrutiniser for the postal ballot papers, which should reach by January 17 next year. Scrutiniser would submit report to chairman and the result would be announced on January 18, 2005, the communication said.
