Our Bureau

Mumbai , Jan. 18

RELIANCE Industries, the largest shareholder in Reliance Energy, has voted in favour of entrusting itself with the power to appoint the majority of directors on the REL board.

Earlier these powers were vested with Mr Anil Ambani, REL Chairman and Managing Director.

According to sources, RIL was among the 97.24-per cent REL shareholders who voted in favour of the changes to its Articles of Association, a set of rules that govern day-to-day workings of a company, through a postal ballot. The result of which was announced today.

The altered Article envisages that so long as the Reliance Group of Companies holds 26 per cent or more of REL's paid-up voting equity share capital, it will have the right to appoint majority of REL's directors on the board of the company.

Reliance Industries had earlier said that it had not sought in any withdrawal of powers conferred on Mr Anil Ambani. It had also said that RIL had not been consulted by REL before the proposed re-amendment of the relevant articles of association. The move to alter the articles of association was seen as part of the ongoing differences between the Ambani brothers over control of the Rs 99,000-crore Reliance Group, of which REL is a subsidiary.

REL had, by way of a special resolution, asked shareholders to mail their votes through postal ballot for a change in its Articles of Association.

The company had sought permission to change Article 131 (a), 131 (a) (ii) and 131 (aa), which allowed Mr Anil Ambani the power to appoint one-third or majority of the total directors on REL's board, choose the Vice-Chairman of the company and even decide the tenure of the Chairman, Vice-Chairman and the directors appointed by him.

REL sought to vest these powers with its prime shareholder, Reliance Industries.

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