Swiggy tightens control of its board amid plans to buy Uber Eats
Swiggy has added a clause in its article of association that prohibits its investors from holding a board seat in Uber or any of its entities.Swiggy investors also cannot hold an aggregate of more than 4.99% stake in Uber or any its entities
- Ahead of a possible acquisition of Uber Eats by Swiggy , the latter has made changes to its articles of association to possibly avoid ceding control to investors of Uber Technologies Inc. in the future.
- Bundl Technologies Pvt. Ltd, which runs and operates Swiggy, has added a clause that any Swiggy investor can’t hold a board seat in Uber or any of its entities, according to the company’s filings with the ministry of corporate affairs (MCA), sourced through business intelligence platform Paper.vc.
- Such clauses are definitely not uncommon when large investors are involved," the legal expert said, requesting anonymity.
- Legal experts said company-specific clauses are not uncommon in the industry.