Jet Airways (India) Ltd and Etihad Airways have amended their shareholder agreement to address the Securities and Exchange Board of India (Sebi)'s concerns about substantial management rights to the latter.
The document, part of Etihad's deal with Jet to pick a 24 per cent stake in the Indian carrier, will be signed in a day or two, a person aware of the development said, requesting anonymity.
One of the key changes ensures that Etihad will not have the unilateral right to terminate the commercial cooperation agreement and this right will now be held by both sides.
Also, the agreement has been re-worked to ensure there is no ambiguity with respect to special rights and veto powers. A source said neither sides could now exercise veto power or casting vote in board matters or resolutions. "The changes were carried out to show that the control is not passed on to Etihad following the investment," he added. The other changes pertain to powers of board members.
27/05/13 Business Standard
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The document, part of Etihad's deal with Jet to pick a 24 per cent stake in the Indian carrier, will be signed in a day or two, a person aware of the development said, requesting anonymity.
One of the key changes ensures that Etihad will not have the unilateral right to terminate the commercial cooperation agreement and this right will now be held by both sides.
Also, the agreement has been re-worked to ensure there is no ambiguity with respect to special rights and veto powers. A source said neither sides could now exercise veto power or casting vote in board matters or resolutions. "The changes were carried out to show that the control is not passed on to Etihad following the investment," he added. The other changes pertain to powers of board members.
27/05/13 Business Standard
