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Last Updated : Jul 20, 2019 06:18 PM IST | Source: Moneycontrol.com

IndiGo's board to seek shareholder approval to decide on woman director

Lack of an independent woman director on the airline's board was one of the issues that co-founder Rakesh Gangwal had raised, while talking about the alleged lack of corporate governance in IndiGo.

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IndiGo's board of Directors on July 20 decided to seek the approval of its shareholders at the upcoming annual general meeting to expand the board for inducting an independent woman director.

Earlier this week, while announcing the company's first quarter results, the board had discussed about inducting a woman director to comply with the law.

Lack of an independent woman director on the airline's board was one of the issues that co-founder Rakesh Gangwal had raised, while talking about the alleged lack of corporate governance in IndiGo.

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According to Securities and Exchange Board of India (Sebi) norms, at least one woman independent director is required in the top 500 listed entities by market capitalisation by April 1, 2019 and in the top 100 listed entities by April 1, 2020.

IndiGo promoter dispute: SEBI directs airline to respond to co-promoter Rakesh Gangwal's letter

Reports suggest that co-founders Rahul Bhatia and Rakesh Gangwal have been discussing the idea of expanding the board for some time, especially to deal with the requirement of having an independent woman director, and to bring in more diversity to the board.

Along with discussing the quarterly results and inducting a woman director, the July 19 meeting was crucial for many reasons.

It was the first interaction between co-founders Rahul Bhatia and Rakesh Gangwal since their differences became public earlier this month.

In a hard-hitting document, Gangwal had said that a 'pan ki dukaan' had better corporate governance than IndiGo.

On the other hand, InterGlobe Enterprises had termed Gangwal's allegations, 'much ado about nothing'.

'Much ado about nothing,' says Rahul Bhatia's IGE on Gangwal's allegations

The IndiGo board's audit committee had earlier this year taken up issues raised by Gangwal over related party transactions between IndiGo and InterGlobe Enterprises, the privately held company of Bhatia.

Gangwal had alleged that InterGlobe had benefitted thought these transactions, which were not at arm's length.

An independent inquiry was done by auditing firm EY, which was then studied by the board.

While the board had said that it found no instance of any violations in the related party transactions, it had asked for procedural changes.

 

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First Published on Jul 20, 2019 06:18 pm
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