Yes Bank, on Thursday, said it would report on the decision to appoint Shagun Kapur Gogia as a director on the board of the bank to the Court since the matter is sub-judice.
“As the matter is sub-judice, the final decision of the board of directors of Yes Bank on the subject will be submitted to the Bombay High Court at its scheduled hearing on July 1, as per the court order,” said a spokesperson of the bank in a statement.
Madhu Kapur, widow of Yes Bank’s co-founder and promoter Ashok Kapur, has filed a suit in the Bombay High Court alleging that Rana Kapoor, co-founder and Chief Executive Officer and Managing Director of the bank, and Mr. Kapur’s brother-in-law, is attempting to deprive her and her children of a place in the board.
The case had an origin as the Kapur family was not consulted before appointment of three directors on the bank’s board recently.
While Ashok Kapur’s family has a shareholding of around 12 per cent in the bank, Rana Kapoor owns around 13 per cent. As the promoters are holding at least 10 per cent of the issued and paid-up share capital of the company, Ashok Kapur and Rana Kapoor’s successors have the right to nominate three persons as directors in the capacity of ‘Indian promoters’.
This is one of the contentious issues, which would come up for hearing on July 1.