New Delhi, 22 July, 2019: Amid promoters feuding over governance issues, InterGlobe Aviation has decided to have up to 10 members on its board, including four independent directors.
The decision, taken during the company’s board meeting on July 20, comes against the backdrop of a feud between co-promoters — Rakesh Gangwal and Rahul Bhatia — over corporate governance issues.
InterGlobe Aviation, the parent of the country’s largest airline IndiGo, at present has six members, including two independent directors.
The board of directors have decided to amend the Articles of Association (AoA) for expanding the board by up to a maximum of 10 members, including four independent directors, a regulatory filing said.
“The said amendment of the articles will be subject to approval of the shareholders at the forthcoming annual general meeting of the company,” it added.
Generally, an AoA pertains to internal rules governing a company.
In a statement on July 19, the company said its board has decided to seek shareholders’ approval for expanding the board to enable the induction of an independent woman.
Former Sebi chief M Damodaran is the Chairman of InterGlobe Aviation. Apart from Gangwal, Bhatia and his wife Rohini Bhatia, former World Bank executive Anupam Khanna and chartered accountant Anil Parashar are board members.
Markets regulator Sebi and the corporate affairs ministry are looking into the alleged governance lapses at InterGlobe Aviation.
Shares of InterGlobe Aviation were trading at Rs 1,475.30, higher by 0.82 per cent, even as the broader market was trading in the negative territory.