InterGlobe Aviation has decided to have up to 10 members on its board, including four independent directors. The decision, taken during the company's board meeting on July 20, also comes against the backdrop of feud between co-promoters -- Rakesh Gangwal and Rahul Bhatia -- over corporate governance issues. InterGlobe Aviation is the parent of the country's largest airline IndiGo.
In a filing to the stock exchanges Sunday, the company said its board of directors has decided to amend the Articles of Association (AoA) for expanding the board up to a maximum of 10 members, including four 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," it added.
Currently, the board has six members, including the chairman. Generally, an AoA pertains to internal rules governing a company.
In a statement 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.
Former Sebi chief M Damodaran is the Chairman of InterGlobe Aviation. Apart from Gangwal, Bhatia and his wife Rohini Bhatia, former World Bank executive Anupam Khanna and chartered accountant Anil Parashar are board members. Markets regulator Sebi and the corporate affairs ministry are looking into the alleged governance lapses at InterGlobe Aviation.