Proxy advisor pulls up IndiGo promoters for poor board meeting attendance

Making a case for increasing the number of directors on the IndiGo Airlines board, especially the independent ones, proxy advisory firm IiAs has pointed out that the current board is “silent” and its “ability to protect the company from its promoters is limited”.

The firm has also criticised the promoters’ low engagement in board meetings, saying this is less than acceptable and a cause for concern. The promoters’ board meeting attendance was less than 40 per cent in 2015-16, according to IiAS. This improved only slightly to 63 per cent in 2017-18 as differences between the two factions began to simmer, despite the Kotak committee recommending a harsh criterion for reappointment of absentee directors. This shows the promoters controlled the business and the board had a limited role, IiAS says.