Signalling a rapprochement between the two squabbling co-founders of IndiGo, Rakesh Gangwal and Rahul Bhatia, the airline said it would expand its board up to a maximum of 10 members, including four independent directors.
In his letter markets regulator SEBI, seeking its intervention, Mr. Gangwal had alleged that Mr. Bhatia enjoyed “unusual powers” at the company because of the composition of the board and a lack of independent directors on it.
“The board of directors, at its meeting held on July 20, 2019, have decided to amend the Articles of Association of the company for expanding the board up to a maximum of 10, including 4 independent directors. The amendment will be subject to the approval of the shareholders at the upcoming annual general meeting,” IndiGo said in a BSE filing.
Currently, the board has six members, including former SEBI chief M. Damodaran as the Chairman of InterGlobe Aviation. Apart from Mr. Gangwal, Mr. Bhatia and his wife Rohini Bhatia, former World Bank executive Anupam Khanna and chartered accountant Anil Parashar are members.
The airline is yet to make a statement on one of the other key contentious issues pertaining to related party transactions between InterGlobe Aviation Ltd. and Rahul Bhatia’s InterGlobe Enterprises. Mr. Gangwal had sought ‘proper checks and balances’ in such pacts.
The Ministry of Corporate Affairs and the Sebi have already initiated their inquiry into the allegations levelled by Mr Gangwal and sought documents from IGAL.