MUMBAI: Infrastructure tycoon Gautam Adani has stepped down from his executive position at his group’s most valuable company, Adani Ports and Special Economic Zone, no longer serving as a key managerial figure. He has transitioned to the role of non-executive chairman, with his older son Karan Adani (38) already managing the port operations. Following Tuesday’s development, Gautam (63) is now the non-executive chairman of seven group companies including Ambuja Cements, Adani Green Energy, Adani Green Solutions, Adani Power, Adani Total Gas, and Adani Infra (India). He remains the executive chairman of only one company, Adani Enterprises, known as the incubator of new businesses such as airports, data centres and copper metals. The change was prompted by the Companies Act (Section 203, sub-section 3), which restricts a key managerial person (KMP) or a whole-time director (WTD) from holding executive positions in more than one company simultaneously. This shift comes a year and seven months after Gautam was re-designated from chairman and MD to executive chairman, which paved the way for Karan to become the MD. He had joined the board of Adani Ports in 1998. While holding simultaneous positions may have been possible with prior approval from the boards of Adani Enterprises and Adani Ports, but given the intent of the law that an executive role pre-supposes whole time engagement with one company, legal experts believe that the role of an executive chairman should only be held with one company. By stepping down as KMP or WTD, Gautam’s accountability to the board decreases, allowing him to focus on emerging businesses.