Details of the crucial Reliance Industries (RIL) board meeting in Mumbai on Monday available today indicate that Anil Ambani had made adiversionary move to stall the proposal for buyback of shares, but found himself up against the board that was solidly behind his elder brother Mukesh.Anil, vice-chairman and managing director of RIL, went to great lengths to convince the 12-member board that it would be better to have a "bonus issue" instead of buyback of shares for which Mukesh, the company's chairman, had called the December 27 meeting. The board, however, approved the buyback proposal.Sources in the know of the board proceedings said that as per law, no proposal could be discussed without giving a seven-day notice to stock exchanges.Anil Ambani, fighting a bitter battle with Mukesh, made a slide presentation during the board meeting to emphasise as to why a bonus issue was a preferable option than buyback for shareholders, sources said.Anil, through his presentation, wanted the board to rethink about the issue of buyback before the entire board rallied behind Mukesh to clear the proposal for which a provision of Rs 2,990 crore was approved at the meeting.In support of his idea, Anil said that Reliance, with huge reserves (over Rs 30,000 crore), could give shareholders better benefit by giving bonus shares, quantum of which could be decided by the board on merit than a buyback.
