Robin Kamark, Etihad's nominee director, has resigned from the board of Jet Airways. Kamark's resignation makes Jet's board dysfunctional as it has only two members now. According to section 149 of the Companies Act, a board of a public company must comprise a minimum of three members and now Jet is non-compliant under this rule.
The resignation comes close on the heels of senior management exits at Jet Airways and a week after Etihad Airways submitted a conditional offer to invest in the airline.
Etihad did not comment on Kamark's resignation. A source said there was no change in Etihad's position on investing in Jet and Kamark's exit was more about safeguarding him from any possible action for non-compliance or violations by the airline.
Jet suspended operations on April 17. The airline has since seen a spurt of senior-level exits and repossession of over 60 per cent of its planes. Lenders continue to search for an investor and are hoping to find two-three investors who can hold 20 per cent stake each.
A source from a public sector bank said any potential investor would seek audited financial account of the previous year. Also, they would expect aircraft to be in good condition and with proper log records.
With the resignations in finance department, the auditors are said to have expressed concerns about completing their job, he added. The other nominee director from Etihad — Kevin Knight — had resigned in March along with Founder Promoter Naresh Goyal and his wife Anita.
Jet's board has now two members — former bureaucrat Ashok Chawla and retired banker Sharad Sharma. "The airline does not have a CEO, CFO and company secretary. No decision can be taken now as the board requires a minimum of three people. The banks would have taken a call on the way forward," a source said.