Court asks Yes Bank to consider Kapur's daughter on board

Written by ENS Economic Bureau | Mumbai | Updated: Jun 11 2013, 14:22pm hrs
Yes Bank'The board room battle could happen in other private banks.' (Reuters)
Even as the Bombay High Court has asked the Yes Bank to advance its board meeting from July 14 to June 27 to consider the claim of of Shagun Gogia daughter of late co-founder of the bank Ashok Kapur to join the board, a foreign institutional investor has asked RBI to ponder over the issue as the board room battle could happen in other private banks.

Mondays direction from the court is, however, a big step forward for Madhu Kapur, wife of late Ashok Kapur who had moved the application for the nomination of Gogia.

Justice SJ Kathawalla directed Kapur to make a formal representation to the bank, nominating her daughter as a nominee-director by June 15 so that the bank can place the proposal before the board. After the board holds its meeting on June 27, it has been asked to inform the court about its decision by July 1.

Commenting on the tussle, Macquarie Equities Research said, We dont think the fundamentals of the bank are going to get affected in anyway. However, this does pose a question to RBI, who is in the process of granting licenses to various promoters and corporate groups, about power struggles and in general implications for the financial sector if we have variants of Yes Bank battle in the years ahead.

Meanwhile, the bank announced that the appointments of three directors Diwan Arun Nanda, Ravish Chopra and M R Srinivasan which was put to vote last Saturday was passed by the shareholders. Overall 57 per cent of the total shareholder ownership votes were polled, and the general body of the shareholders passed all the three resolutions with an overwhelming majority of about 80 per cent and elected all three aforesaid directors, the bank said.

Yes Bank, Bombay High Court, business news