IndiGo promoters' differences threaten services

IndiGo co-founder Rakesh Gangwal has said he is in support of amending the airline's Articles of Association at the upcoming Annual General Meeting as part of the efforts to hammer out a truce with co-promoter Rahul Bhatia. The AGM is to slated to be held on August 27.

He also added that the board of InterGlobe Aviation, which runs IndiGo, has approved the plan to increase the board size from 6 to 10 members. "The Board also has now approved a new related party transaction policy and to close an open issue if the Articles of Association (AoA) are amended at the upcoming August 27 AGM to increase the Board size to 10 directors," Gangwal said.

He said he was happy to see progress in the quest for better governance in the company. "While much work lies ahead, including mending some fences and the regulators completing their investigations on the governance issues raised with them, it is gratifying to see progress towards better governance," he said, Business Today reported. 

The feud between Gangwal and Bhatia came to the fore in July when the latter wrote to markets regulator Sebi seeking its intervention in addressing alleged corporate governance lapses in the company. The Bhatia camp had rejected the allegations. 

Rakesh Gangwal

Gangwal holds around 37 percent stake in InterGlobe Aviation, while Bhatia owns nearly 38 percent shares. 

InterGlobe Aviation said on Friday that the appointment of M Damodaran as an independent director for a five-year term starting from January 23, 2019 has been proposed as an ordinary resolution for the annual general meeting. 

"As a matter of abundant clarification of the legal position, the board has approved a resolution through circulation today i.e. August 23, 2019, that for continuance of directorship of Meleveetil Damodaran as an independent director of the company, beyond the age of 75 years, the company shall at an appropriate time before Damodaran attains the age of 75 years, seek the approval of shareholders by way of a special resolution," it added.