New Delhi: Rahul Bhatia and Rakesh Gangwal, the two co-promoters of IndiGo Airlines, have reached a truce of sorts.
The size of the company’s board will be expanded to 10 from the current six and will include an independent woman director, as a measure to address some of the concerns raised by Gangwal.
Sources close to the development said that the Articles of Association of the company will be amended to allow for the expansion of the board.
In a recent letter to the SEBI and the Union government, Gangwal had claimed that the company had failed to address various corporate governance issues and was not fully compliant with the requirements of the Companies Act, 2013 and the SEBI’s Listing Agreements.
Gangwal had also flagged the issue of related party transactions involving InterGlobe Enterprise and IndiGo Airlines. Sources maintain that most of these concerns were unfounded but admitted that there were some procedural lapses in certain transactions.
As for the Shareholders Agreement, which has been amended twice before taking the company public in 2015, it is understood that it would be allowed to lapse in November this year.
The operations and management of the company would be guided by its Articles of Association.
Sources also maintain that the recent disagreements between the two co-promoters would not affect shareholders’ wealth as the company was doing well. While the share price took a hammering in the recent days, sources maintain markets will respond to the robust performance of the company.
24/07/19 Business Line
To Read the News in full at Source, Click the Headline
The size of the company’s board will be expanded to 10 from the current six and will include an independent woman director, as a measure to address some of the concerns raised by Gangwal.
Sources close to the development said that the Articles of Association of the company will be amended to allow for the expansion of the board.
In a recent letter to the SEBI and the Union government, Gangwal had claimed that the company had failed to address various corporate governance issues and was not fully compliant with the requirements of the Companies Act, 2013 and the SEBI’s Listing Agreements.
Gangwal had also flagged the issue of related party transactions involving InterGlobe Enterprise and IndiGo Airlines. Sources maintain that most of these concerns were unfounded but admitted that there were some procedural lapses in certain transactions.
As for the Shareholders Agreement, which has been amended twice before taking the company public in 2015, it is understood that it would be allowed to lapse in November this year.
The operations and management of the company would be guided by its Articles of Association.
Sources also maintain that the recent disagreements between the two co-promoters would not affect shareholders’ wealth as the company was doing well. While the share price took a hammering in the recent days, sources maintain markets will respond to the robust performance of the company.
24/07/19 Business Line
0 comments:
Post a Comment