The Hindu Business Line : Reliance Energy accepts resignations of 2 directors

RELIANCE Energy Ltd today accepted the resignations of two of its directors - Mr Amitabh Jhunjhunwala and Prof J. Ramachandran. The two were among six directors who had resigned from the REL board on November 25, in the wake of the ownership dispute in the Reliance group.

The other four directors have withdrawn their resignations, stating that the Reliance Industries (RIL) and REL boards have expressed full confidence in their professionalism.

The four directors are Mr Satish Seth, Executive Vice-Chairman, Mr J.P. Chalasani, Director (Business Development), Mr K.H. Mankad, Director (Finance) and Mr S.C. Gupta, Director (Operations). These four whole-time directors were nominees of RIL, which holds majority stake in REL. Earlier, they had tendered their resignations, stating, "There was a growing perception that our professional conduct might be challenged, and in order to protect our self-respect and professionalism, we have tendered our resignations," a notice to the stock exchanges said.

According to an REL spokesperson, the decision on all six resignations was taken after considering RIL's letter dated January 3, "on matters concerning REL and related issues". He however, did not elaborate on the contents of the letter.

Mr Jhunjhunwala, considered a confidante of Mr Anil Ambani, had been nominated on the REL board as representative of Reliance Power Ventures Ltd, an RIL subsidiary. He had quit as Treasurer of RIL a couple of weeks ago. This was given as the reason for accepting his resignation. Mr Jhunjhunwala did not comment on the matter.

Prof J. Ramachandran, who was an independent director was quoted as saying: "Given the recent developments, and some comments regarding my independence, I thought it best to resign as director for highest standards of corporate governance require independence not just in terms of fact, but even more importantly, independence in terms of perception."

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