IndiGo Promoter Dispute: InterGlobe Aviation To Put In Place New Policy On Related Party Transactions
The differences between co-promoters Bhatia and Gangwal came into the open earlier this month after Gangwal wrote a letter to the Securities and Exchange Board of India flagging concerns about alleged corporate governance lapses at InterGlobe Aviation. The allegations have been refuted by the Bhatia camp.
The people cited above said the policy on related party transactions was approved by the board unanimously. The company's board —which has six members, including Gangwal and Bhatia —met for two days on July 19 and 20.
Under the new policy, external advice would be sought for related party transactions that are worth over Rs 2 crore and bidding process would be mandatory for any such contracts, the people said.
Further, any changes in related party transactions would have to be unanimously approved by the company's independent directors, they added.
Sources said Bhatia group would nominate five members to the board, including the chief executive officer.
The sources claimed that the IndiGo promoter dispute stands resolved and that the company is on a growth path.
While acknowledging that what has happened was unfortunate, the sources exuded confidence that the company would emerge stronger.
The InterGlobe board of directors has decided to amend the Articles of Association for expanding the board by up to a maximum of 10 members, including four independent directors, the company said in a regulatory filing on Sunday.
"The said amendment of the articles will be subject to approval of the shareholders at the forthcoming annual general meeting of the company," it had said.
On Wednesday, IndiGo shares rose 4.69 percent to Rs 1,594.45 apiece on the BSE while the benchmark Sensex shed 0.36 percent to end the day at 37,847.65 points.