INSUBCONTINENT EXCLUSIVE:
approved a new policy on related party transactions, sources said on Wednesday, amid promoters feuding over governance issues
Simmering differences between co-promoters -- Rahul Bhatia and Rakesh Gangwal -- came into the open after the latter sought intervention of
While the allegations have been refuted by Mr Bhatia's group, Sebi and corporate affairs ministry are looking into the issue.Against this
backdrop, the board of InterGlobe Aviation -- parent of the country's largest airline IndiGo -- met on July 19 and 20
The sources told PTI that the new policy on related party transactions (RPTs) was approved by the board unanimously.Under the new policy,
external advice would be sought for RPTs that are worth over Rs 2 crore and bidding process would be mandatory for any such contracts, the
Further, any changes in RPTs would have to be unanimously approved by the company's independent directors, they added.Among other issues,
Mr Gangwal had raised concerns that various RPTs involving Mr Bhatia's InterGlobe Enterprises (IGE) Group were executed without seeking
the audit committee's approval and without seeking competitive bids from third parties
Another issue was about non-appointment of an independent woman director.A decision has also been taken to expand the strength of the board
to up to ten members, including four independent directors
Also, there would be one woman independent director
Currently, the board has six members, including Mr Bhatia and Mr Gangwal.The sources said Mr Bhatia group would nominate five members to the
board, including the Chief Executive Officer.Mr Gangwal and his affiliates hold around 37 per cent stake in InterGlobe Aviation -- the
parent of the country's largest airline IndiGo -- while Mr Bhatia's group owns nearly 38 per cent shareholding.The company, which was
listed in 2015, has come under regulatory lens following the complaint by Mr Gangwal.The sources claimed the issues between the co-promoters
stand resolved and the company is on growth path
While acknowledging that what has happened was unfortunate, the sources exuded confidence that the company would emerge stronger.The board
of directors has decided to amend the Articles of Association (AoA) for expanding the board by up to a maximum of 10 members, including four
independent directors, the company said in a regulatory filing on Sunday
"The said amendment of the articles will be subject to approval of the shareholders at the forthcoming annual general meeting of the
company," it had said.Generally, an AoA pertains to internal rules governing a company.On July 12, Mr Bhatia's group said the company is
well run, financially sound and managed by a competent set of managers as it termed Mr Gangwal's allegations of as much ado about
nothing.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
