Anil not sure of status on IPCL board

The resignation tendered by Anil Ambani took effect immediately.

Barely two days after Indian Petrochemicals Corporation Ltd (IPCL) informed the stock exchanges that Anil Ambani had ceased to be a member of the board, Ambani today said he was not aware of any decision taken by the company on his status.

Sources close to Anil Ambani said, "He (Anil Ambani) is not aware of any steps taken by the IPCL board concerning his status as vice-chairman and director." Ambani had tendered his resignation from the Mukesh Ambani-led IPCL board on January 3.

However, a source close to IPCL said: "The resignation tendered by Anil Ambani took effect immediately. It is an accepted position in law that a resignation by a director takes effect on its being tendered, unless the articles of association of the company require acceptance by the board. The articles of association of IPCL do not contain any provision requiring acceptance by the board of a resignation tendered by a director," the source said.

After tendering his resignation, Anil Ambani offered to reconsider his resignation at the request of the IPCL board on January 27, saying, "I appreciate the gesture of the IPCL board in requesting me to reconsider my resignation."

Anil Ambani's statement (which came through his spokesperson) demonstrating that he was not informed of any decision taken by the IPCL board, came a day before the company's board meeting on its audited financial results and dividend for 2004-2005. The Reliance Industries board meets on Wednesday to finalise its annual accounts.

In a media statement, IPCL had said on Friday the resignation was "noted by the IPCL board" at its meeting on January 21. It further said, "The subsequent letter dated January 27 addressed to the board of directors of IPCL was placed before the board at the meeting on March 30 and noted by the board."

In his letter, Anil Ambani had accused co-director Anand Jain of conspiring to divide the family and said it was below his dignity to serve on the same board as Jain.

The IPCL source today said: "Anil Ambani, vide his letter dated January 3, tendered his resignation as vice-chairman and director of IPCL. This fact was intimated to the stock exchanges by IPCL on January 3.

"The resignation tendered by Anil Ambani therefore took effect immediately. This is evident from the fact that Anil Ambani neither attended the board meeting of January 20 nor sought a leave of absence.

Nevertheless, the board of directors, as a matter of good gesture, considered the resignation at the board meeting held on January 20.

The resignation tendered by Anil Ambani having been considered by the board at its meeting on January 20, he ceased to be a member of the board from that date.

"The resignation of Anil Ambani became effective from January 20. The board's request for reconsideration of the resignation and the response of Anil Ambani with preconditions does not change the facts of his having ceased to be a director from January 20."