The board of directors of strife-torn IndiGo on Saturday said that it would seek the approval of its shareholders to induct an independent woman director — one of the issues flagged by co-founder Rakesh Gangwal in his complaint to the SEBI on violations of corporate governance norms at the firm.
“The Board has decided to seek the approval of the shareholders at the upcoming annual general meeting for expanding the board to enable the induction of an independent woman director,” according to IndiGo’s press statement.
IndiGo’s CEO Ronojoy Dutta on Friday, during an analysts’ conference call after the board had approved the quarterly results, said that expanding the board would require amending the Articles of Association.
SEBI intervention
In his letter, Mr. Gangwal sought SEBI’s intervention in alleged violation of its regulations and corporate governance, “unusual rights” enjoyed by co-founder Rahul Bhatia’s InterGlobe Enterprises (IGE) including the right to appoint three out of six directors, nominate the chairman of the board, nominate and appoint the MD, CEO and the president, besides the absence of an independent woman director.
He also objected to increasing related party transactions between IndiGo and IGE and highlighted the need for proper checks and balances in conducting them.
