SpiceJet has sought shareholders’ approval for the appointment of Ajay Singh as Managing Director, a position he assumed in May this year, without any remuneration for three years.
Singh, who came to the rescue of the no-frills carrier, was appointed as Managing Director by the board with effect from May 21 for a three-year period.
Singh is not drawing any remuneration for the executive functions performed by him. However, he will be eligible for expenses for his office and other incidental expenses incurred by him while discharging his duties as Managing Director,” according to the postal ballot notice sent to shareholders.
As per the notice, dated August 28 and submitted to the BSE today, Singh holds 354,443,450 equity shares in SpiceJet.
While he would not taking any remuneration, he would be eligible for expenses for his office and other incidental expenses incurred while discharging his duties as Managing Director.
Singh, the original co-founder, took back the reins last December amid SpiceJet facing turbulent times.
He acquired 58.46 per cent stake from then promoters Kalanithi Maran and Kal Airways Pvt Ltd.
Besides, the low cost airline has sought approval from the shareholders for adopting a new set of Articles of Association and for alteration of registered office clause of Memorandum of Association.
Shareholders have time till October 5 to submit the filled postal ballot forms.
Shares of the company today dropped nearly six per cent to Rs 23 on BSE.