Mumbai: The Jet Airways-Etihad share holder agreement is likely to be revised again following Securities and Exchange Board of India and Foreign Investment Promotion Board's concerns over substantial control to the Abu Dhabi airline under the deal.
Under the current agreement board resolutions require consent of 3/4th of members. According to sources it might amend a clause saying that simple majority will be required to pass resolutions in the board. As per the agreement Etihad would get three board positions while Jet Airways would have four members. There will be seven independents on the board. In simple terms the proposed amendment means that vote of eight board members will be sufficient to pass a resolution.
A Jet Airways spokesperson said, "As the Jet Airways and Etihad Airways alliance is being examined by the concerned regulatory authorities and their consequent approvals are awaited, it would be inappropriate for Jet Airways (India) Ltd to respond at this stage."
Etihad has agreed to pick up 24 percent in Jet Airways for about Rs 2060 crore. If indeed the amendment goes through this will be the second revision of the share holder agreement.
11/07/13 Aneesh Phadnis/Business Standard
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