Reliance Industries Ltd (RIL) has undertaken a significant restructuring of promoter holdings, under which a significant chunk of shares have been transferred to a limited liability partnership (LLP), reports Business Standard. The move would reduce the dividend distribution tax before the Direct Taxes Code (DTC) kicks in. In the financial year ended March 31, the company paid
dividend distribution tax of INR3.5bn. For FY09, the outgo was INR3.2bn. The promoter group, which held shares through 32 entities, would now transfer their shares, representing 34.17% of
voting rights, to a total of 61 entities, including 27 LLPs. The transaction was completed on August 11. LLPs are an alternative corporate business vehicle that offers the benefits of not only limited
liability, but also allows its members the flexibility to organise their internal structure as a partnership based on an agreement.
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