Reliance Industries Ltd., welcomed aboard Yasir Al-Rumayyan, Chairman, Saudi Aramco as independent director after meeting the required regulatory criteria and who is seeking shareholder approval as well.

However, a shareholder of RIL known as California State Teachers' Retirement Fund (CalSTRS) voted otherwise on the move based on US proxy advisory research firm Glass Lewis' recommendation. It then went on to oppose this appointment since Mr.Yasir operates as a governor to Saudi Arabia’s Public Investment Fund (PIF) as well as the same role in Aramco.

On the other hand, PIF had already invested Rs.9,555 crore in Reliance Retail and Rs 11,367 crore in RIL’s Jio platforms. Additionally, Aramco and RIL are said to be already engaged for another equity deal that talks about 20 percent of Reliance’s oil to chemical business.

This voting regarding the appointment of Mr.Yasir is said to last for three years and is expected to end on October 19.

According to RIL, his arrival might bolster the board’s diversity and skill sets and benefit the firm through the transition from oil to chemical and will most likely help achieve Net Carbon Zero by 2035.

In the words of RIL, Mr.Yasir is an esteemed global business leader and is the non-executive chairman of Saudi Aramco. He holds nearly three decades of experience in some of Saudi Arabia’s most reputable financial institutions with one being the Governor of the Public Investment Fund of Saudi Arabia.

His experience also spans over international business as well as governance, aside from possessing expertise across finance, global energy industry and insights on emerging technology-led business models.

However, RIL has one aspect to clarify on this appointment and that is, that his appointment has nothing to do with the contemplated transaction of Saudi Aramco.

Moreover RIL said that its oil to chemical is being spun off to a subsidiary and according to the terms of the prescribed transaction, Saudi Aramco is said to take part in the equity of the oil to chemical subsidiary.

The board of this subsidiary is believed to have nominees hailing from Saudi Aramco to protect its interest.

RIL assures that it has been and shall abide by the best practices of the corporate governance in all matters, specifically when it comes to appointment of independent directors.

Lastly, during the 44th annual general meeting (AGM) of RIL, Mukesh Ambani described Mr.Yasir’s appointment as the firm’s first internationalization and assured that there will be more international plans hereafter.