Yes Bank board to take call on entry of Shagun Gogia

Written by fe Bureau | Mumbai | Updated: Jun 27 2013, 06:11am hrs
The board of Yes Bank will meet on Thursday to finally consider the application of co-founder Ashok Kapur's daughter Shagun Kapur Gogia to join the board of the bank. Ahead of the meeting Gogia, has submitted additional details sought by the bank, say sources. Gogia had submitted a formal application last Friday, which will be voted upon at Thursday's board meet.

Gogia's family led by her mother Madhu Kapur own 12% stake in the bank and have been seeking the right to nominate a board director to represent their shareholding. Rana Kapoor, the bank's managing director and chief executive officer owns 13% stake in YES Bank.

Sources close to the Kapur family say that they hopeful the board will consider the merits of the application and feel that the RBI's "fit & proper" criteria should not be a deterrent in accepting Gogia's nomination to the board. The Yes Bank management has insisted that Gogia's previous application for a board seat in 2009 was rejected because it did not meet the "fit& proper" norms.

If Gogia is rejected for a board seat, the family may consider another nomination. "The Kapur family is willing to nominate another person, if the board gives it a chance. They just want representation on the board," sources said. As such the board which used to have 9-10 members has been reduced to seven members now, the sources pointed out.

Earlier this month, Gogia and her mother Madhu Kapur had approached the Bombay High Court, as three directors were appointed to the bank's board without any consultation with the Kapur family, which is part of the promoter group of the bank. As matters were discussed in court, it was made apparent that the Kapurs wanted representation on the bank's board and Gogia had been named the candidate for this.