The board of Yes Bank met in Mumbai on Thursday to discuss and vote on the nomination of Shagun Gogia,the daughter of late co-founder Ashok Kapur,to the board of the bank. Yes Bank,however,did not release the results of the vote,saying the decision would be submitted directlty to the court.
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, the bank said in a release.
Yes Bank was told by the high court to advance its board meet from the earlier scheduled date of July 24 after Madhu Kapur,wife of late Ashok Kapur,filed a petition seeking the family’s nomination on the board of Yes Bank be considered. Kapur had also sought to block the nomination of three board directors appointed by Yes Bank saying the family,which holds over 12% stake in the bank,had not been consulted. The court in response had asked Yes Bank to consider the nomination of Shagun Gogia at its board meet. Rana Kapoor,currently the MD&CEO of Yes Bank,holds 13.7% stake in the bank.
Subsequently Gogia filed her application for a seat on the board for the second time since 2009. Her first attempt was turned down with the bank saying she did not meet RBIs criteria for bank board members. Sources close to the family,however,say the fit & proper criteria is fairly broad and Gogia’s application is permissible under those 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.
When contacted,Gogia said she was not aware of the decision taken by the board.