Mumbai, July 22 (IANS) InterGlobe Aviation, the parent company of IndiGo, has decided to expand its Board of Directors up to 10 members and the expanded board will have four independent directors.
The decision comes on the backdrop of the recent feud between co-promoters Rakesh Gangwal and Rahul Bhatia, over issues of corporate governance.
“The Board of Directors of the company, at its meeting held on July 20, 2019, have decided to amend the Articles of Association of the Company for expanding the board up to a maximum of 10, including 4 independent directors. The said amendment of the articles will be subject to approval of the shareholders at the forthcoming annual general meeting of the company,” IndiGo said in a regulatory filing late on Sunday evening.
Currently, its board has six members, including the Chairman M. Damodaran, the former Sebi chief. On July 19, the company said its board has decided to seek shareholders’ approval for expanding the board to enable the induction of an independent woman.
The other members on the board of InterGlobe Aviation, apart from Bhatia and Gangwal are former World Bank executive Anupam Khanna, Anil Parashar, a chartered accountant and Rohini Bhatia, the wife of Rahul Bhatia.
After the recent allegations of “collapsing” corporate governance in the company by Rakesh Gangwal, the Ministry of Corporate Affairs has sought “information or explanation” from the airline. Market regulator Sebi is also looking in the alleged governance lapses.