NEW DELHI :
InterGlobe Aviation Ltd, which operates India’s largest airline, IndiGo, on Wednesday said its shareholders have approved the alteration of the company’s Articles of Association (AoA) to expand the size of the board to 10 from six, as well as reappointment of promoter Rahul Bhatia as a director and reappointment of chairman M. Damodaran as an independent director for five years.
The shareholders also approved other resolutions at InterGlobe’s 16th annual general meeting on Tuesday at New Delhi, including the appointment of S.R. Batliboi Co. Llp as the statutory auditors, extending travel benefits to non-executive directors, appointment of Anil Parashar as an independent non-executive director, and paying profit-related commission to independent directors.
Mint had on 27 August reported that IndiGo’s co-promoter Rakesh Gangwal, who is in the midst of a tussle with Bhatia, has agreed to support the proposed changes at the AGM after some of Gangwal’s demands, including on board expansion and related-party transactions (RPTs), were accepted last week.
Gangwal had earlier objected to the board expansion as he contended that in the absence or resignation of an independent director, co-founder Bhatia’s InterGlobe Enterprises Pvt. Ltd (IGE) would have an unfair advantage in approving key policy changes since it has five directors representing it.
Bhatia has maintained that there is no evidence to substantiate Gangwal’s allegations on RPTs.
Gangwal and his associates hold nearly 37% in InterGlobe Aviation, while Bhatia’s IGE owns around 38%. Although the two groups own roughly similar stakes, an initial agreement gave special rights to Bhatia’s IGE Group.
The country’s largest airline uses a fleet of 238 aircraft, including Airbus A320neo, A320ceo and A321 planes as well as ATR turboprop planes, to connect domestic and nearby international destinations.
On Wednesday, IndiGo’s shares rose 0.64 % to ₹1659.50, per stock, at the BSE, while the benchmark Sensex fell by 0.50% to 37,451.84 points.