India’s top aviation company IndiGo will hold a crucial extraordinary meeting today. Shareholders are likely to take a decision on amending the company’s Articles of Association which has been a key point of friction between the company’s Founders Rahul Bhatia and Rakesh Gangwal.
The EGM has been called to make several changes to the AOA, which also include the removal of a clause which gives the promoters, Bhatia and Gangwal, the right of first refusal over the acquisition of each other’s shares. A removal of this clause will allow either side to sell or transfer shares to a third entity without giving notice to each other.
Some officials say that this EGM may signal a truce because this has been called after joint requisition by both promoters and that there will be more clarity after the EGM. The legal tussle between the two promoters who own around 75 percent of the largest Indian airline became public in July 2019; the corporate battle even reached the London Court of Arbitration and recently in October, Gangwal had approached the Delhi High Court for enforcement of the London award.
(Edited by : Vijay Anand)
First Published: Dec 29, 2021 5:58 PM IST