HC asks Yes Bank to advance board meet, Madhu to name nominee
Mumbai: The Bombay High Court on Monday asked private lender Yes Bank to advance its board meeting and hold it before June 27 while asking plaintiff Madhu Kapur, wife of the bank's deceased co-founder Ashok Kapur, to name her nominee for a board position.
Justice S J Kathawala today directed Madhu Kapur to make a formal representation to the bank, nominating her daughter Shagun Gogia as nominee-director, so that the bank could then place the proposal before the board.
Kapur owns 12 percent stake in the bank.
The bank, which was to have board meeting on July 24, was today asked by the court to advance it before June 27, to consider and take a decision on Madhu's nominee.
The court will hear the matter again on July 1.
High Court was hearing a petition filed by Madhu and her children challenging the nominations of Diwan Arun Nanda, Ravish Chopra and MR Srinivasan as directors of the bank.
Today the bank released outcome of the shareholders' meeting in which 80 percent of the shareholders who participated in the voting concurred with the appointments.
Reacting to the development in the court, the bank in a statement said its chairman MR Srinivasan and managing director and chief executive Rana Kapoor had on June 6, 2013 -- prior to the AGM on June 8, and before any litigation was filed by her -- offered to discuss Madhu Kapur's nominee at its scheduled board meeting of July 24. But she did not put up any name formally.
On the court asking the bank to advance the board meeting before June 27, the statement said, "This is in line with Yes Bank's proposal as per its letter dated June 6."
According to the plaintiffs, they should have been consulted before appointment of directors.