The IndiGo board approved a new policy on transactions with related parties: Gangwal
New Delhi, August 23 () InterGlobe Aviation promoter Rakesh Gangwal said on Friday that the company's board of directors approved a new policy on transactions with related parties, in the midst of a continuing contest with co-promoter Rahul Bhatia on governance issues.
The company is the parent company of the largest airline in the country, IndiGo.
While much work remains to be done, including the repair of some barriers and that regulators complete their research on the governance issues they face, it is gratifying to see progress towards better governance, Gangwal said in a statement.
Gangwal said the board of directors now approved a new transaction policy with related parties and that it will also close an open problem if the Articles of Association are modified at the company's next annual general meeting (AGM) to increase the board size to 10 directors .
In light of this positive and important development, I will support the proposed changes to the Articles, he said.
The AGM is scheduled for August 27.
Currently, InterGlobe Aviation has six board members.
The dispute between Gangwal and Bhatia was made public after the first one, in July, wrote to market regulator Sebi seeking his intervention to address alleged corporate governance failures in the company. The accusations have been rejected by the Bhatia group. Gangwal and its affiliates own a stake of around 37 percent in InterGlobe Aviation, while the Bhatia group owns almost 38 percent of the shares. RAM HRS