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IndiGo may appoint more directors amid promoters dispute, says report

IndiGo may appoint more directors amid promoters dispute, says report

IndiGo may appoint more directors amid promoters dispute, says report
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By CNBC-TV18 Jul 17, 2019 9:52:22 AM IST (Published)

Appointment of more independent directors in the company has been a contentious issue in the ongoing rift between the promoters of IndiGo, Rakesh Gangwal and Rahul Bhatia, with the former filing a formal complaint with the market regulator Sebi to look into the allegations of corporate governance violations.

IndiGo parent InterGlobe Aviation may consider inducting new directors and increase the count to 12 from the current six at its board meeting to be held on July 19, reported Mint, citing two people aware of the matter. 

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The proposal will be placed before the board when it meets to approve the low-cost airline's first-quarter results, the report said.
Appointment of more independent directors in the company has been a contentious issue in the ongoing rift between the promoters of IndiGo, Rakesh Gangwal and Rahul Bhatia, with the former filing a formal complaint with the market regulator Sebi to look into the allegations of corporate governance violations.
According to a 30 January letter written by Rahul Bhatia and his wife Rohini to the company’s board, Gangwal has asked on several occasions for the board to be expanded. “Mr. Bhatia agreed to expansion so long as the IGE Group’s representation on the board is maintained at the proportion mentioned in the shareholders’ agreement (SHA) and the articles of association of the company (AoA)," the letter said, as Mint reported.
InterGlobe Enterprises, the parent company of InterGlobe Aviation is headed by Rahul Bhatia, who also owns a 38 percent stake in InterGlobe, while Gangwal owns 37 percent stake.
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