Finally, AAI gets veto in Mihan JV

Nagpur: As Maharashtra Airport Development Company (MADC) and Airports Authority of India (AAI) finally formed a joint venture company for the ambitious Mihan project, AAI has been given a veto power in the new entity Mihan India Private Limited (MIPL).
MADC is the majority shareholder with 51% stake in this venture while AAI has 49%. But it has been decided that when it comes to major decisions, both partners will have an equal say, irrespective of the stake. The issue had been hanging fire for quite some time now, with AAI insisting for a right to refuse.
MIPL chairman R C Sinha said the issue has been sorted out. While routine decisions will be taken by MADC, whenever it comes to taking a key step, such as liquidation, declaration of bankruptcy, taking over any other airport or even transferring work to some other party, it would be decided along with AAI, he said.
When asked if a minority shareholder can have veto power in a company, he said, "There is no question of majority or minority stake and all major plans have to be decided mutually." MIPL has a total share capital of Rs 20 crore, which includes subscribed capital of Rs 10 crore.
With this issue being solved it is now hoped that the issue of transfer of Nagpur airport to MIPL will also be sorted out. Even as the process of valuation of assets to be pooled in by both partners would continue, the transfer of land can be done before that, said Sinha.
28/07/09 Shishir Arya/Times of India

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