Mukesh Ambani’s Succession Plans and Why They Matter To All of us

Last week, there were news reports that Asia’s richest businessperson, Mukesh Ambani ha been drawing up succession plans detailing how his immense wealth would be divided among his wife and three children. These plans, reported by several news portals indicated that Ambani plans to follow the model of inheritance of wealth in family businesses that Walmart’s Walton family is known for. Among other things, Ambani’s plans include placement of his children on the boards of the many businesses in the sprawling Reliance empire and drawing up a “clear” succession plan, leaving no room for ambiguity, as to who gets what after he retires or after he is no more. In other words, the whole idea is to ensure a “smooth” transition to the Next Gen of the Ambani clan so that there are no unseemly squabbles and internecine family fights over his wealth.

By drawing up succession plans, Mukesh Ambani, seems to have learnt his lessons from what happened after the patriarch, Dhirubhai Ambani died in estate, or without leaving a will. What followed was a very public and ugly spat between the Ambani brothers, Mukesh and Anil, over the division of assets, which ultimately needed intervention from not only their mother, Kokilaben, but also leading lights of India Inc. as well as a “nudge” from then Prime Minister, Manmohan Singh, to “resolve” the disputes…