Shareholders of InterGlobe Aviation, the parent company of Indigo airline, on Wednesday rejected a special resolution of co-promoter Rakesh Gangwal to amend the company’s Articles of Association (AoA).
Gangwal had sought removal of articles pertaining to transfer and acquisition of the company’s shares, including ‘Right of First Refusal’ and ‘ Tag Along Right’.
“The Special Resolution has not been passed as the votes cast in favour (48.55%) of the resolution are less than three times the number of votes cast against (51.44%) the resolution,” InterGlobe Aviation said in a BSE filing after the extraordinary general meeting held here on Wednesday.
Rahul Bhatia and affiliates -- InterGlobe Enterprises (IGE) Group -- has around 38% stake in the company and Rakesh Gangwal and his related entities own around 36.64% stake.
As per the AoA, if any member of Rahul Bhatia-led IGE Group wants to transfer shares to a third party, then the non-transferring group will have the ‘Right of First Refusal’ subject to certain conditions.
Similarly, the non-transferring group will also have the ‘Tag Along Right’ wherein it would have the option to sell some part of the shareholding.
The differences between co-founders and co-promoters -- Rakesh Gangwal and Rahul Bhatia -- came to the fore in July 2019 after Gangwal sought market regulator Sebi’s intervention to address alleged corporate governance lapses at the company. In the wake of the feud, arbitration proceedings are also going overseas between the two promoters’ sides.