Mumbai: The revamped Jet Airways board will have seven independent members who will be selected upon a consensus between two sides, said sources familiar with the deal. This means Etihad Airways which is picking up 24 % stake for about Rs 2,060 crore in Naresh Goyal-owned airline will have a say in the selection of independent directors.
The government's foreign direct investment (FDI) rules in aviation require 2/3rd of board members to be Indian citizens and the revamped board will have three members from Etihad, four members from Jet and seven independent members.
Etihad is being regarded as an ordinary public shareholder under the agreement it signed with Jet Airways and such a classification does not require it to make an open offer. However the deal is facing hurdles with share holders and even Securities and Exchange Board of India and Foreign Investment Promotion Board of India raising concerns over "substantial rights'' being accorded to Etihad Airways.
20/06/13 Aneesh Phadnis/Business Standard
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The government's foreign direct investment (FDI) rules in aviation require 2/3rd of board members to be Indian citizens and the revamped board will have three members from Etihad, four members from Jet and seven independent members.
Etihad is being regarded as an ordinary public shareholder under the agreement it signed with Jet Airways and such a classification does not require it to make an open offer. However the deal is facing hurdles with share holders and even Securities and Exchange Board of India and Foreign Investment Promotion Board of India raising concerns over "substantial rights'' being accorded to Etihad Airways.
20/06/13 Aneesh Phadnis/Business Standard
