The Bombay High Court will hear on Monday a petition filed by Madhu Kapur seeking a direction to Yes Bank's board to take her daughter Shagun Kapur Gogia as a nominee director.
Mumbai: The Bombay High Court will hear on Monday a petition filed by Madhu Kapur seeking a direction to Yes Bank's board to take her daughter Shagun Kapur Gogia as a nominee director.
Gogia is the daughter of bank co-founder Ashok Kapur, who was killed in the November 2008 terror attacks on the city. She was nominated by her mother Madhu Kapur as the legal heir to her deceased husband's 12 percent stake in the bank.
Yes Bank was founded by Kapur and Rana Kapoor, who is married to Madhu's younger sister Bindu. The tussle between the promoter families is over a board seat in Yes Bank.
Rana Kapoor, who owns 13.7 percent in the bank, is the Managing Director and Chief Executive of the bank now.
The tussle began on June 6 when Madhu moved the Bombay High Court seeking to quash the appointment of three directors (Diwan Arun Nanda, Ravish Chopra and MR Srinivasan) on its board as well as to stall the AGM slated for June 8.
While hearing the case, Justice S J Kathawala had advised the warring families to resolve the dispute in an amicable manner, but did not stop the AGM. It asked the board to advance its July 22 meeting to June 27 and consider Madhu's request for making her daughter Shagun an nominee director.
Accordingly the bank held its board meeting last Thursday. After the board meeting, the bank had issued a statement saying it would inform the Bombay High Court about the outcome of the board.
However, a letter addressed to Madhu by the board said: "The board of directors has unanimously agreed that the recommendation of Shagun Gogia made by you should not be accepted."
The letter also said Rana Kapoor recused himself from the deliberations surrounding this issue both at the nominations and governance committee meeting and then at the overall board level.
When contacted, the bank's spokesperson refused to comment saying "the matter is subjudice".
While Gogia claims she has the right due to her status as legal heir, the bank argues that she may not pass muster with the RBI's fit and proper criterion for bank directorship.
In 2009, Yes Bank's board had rejected the candidature of Shagun on the ground that she might not meet the requirements of the fit and proper clause.