Rana Kapoor Shouldn’t Get to be CEO Again: Madhu Ka­pur

Yes Bank spokesper­son says Kapoor’s ap­point­ment as MD & CEO was ap­proved by Re­serve Bank of In­dia

The Economic Times - - Companies - ANITA BHOIR

Madhu Ka­pur, the widow of Yes Bank co-founder Ashok Ka­pur, has sought the Re­serve Bank of In­dia’s in­ter­ven­tion to pre­vent Rana Kapoor, the other co-founder, from be­ing nom­i­nated as the man­ag­ing di­rec­tor and chief ex­ec­u­tive of­fi­cer for an­other term. “…you are re­quested to give no ap­proval to the ap­point­ment of any per­son as chair­man and man­ag­ing di­rec­tor of the bank un­less it is jointly rec­om­mended by Rana Kapoor and us (suc­ces­sors of late Ashok Ka­pur) as per the Ar­ti­cles of As­so­ci­a­tion,’’ said a let­ter dated May 9 May, 2014, ad­dressed to the RBI deputy gover­nor. The let­ter was jointly signed by Madhu Ka­pur, her daugh­ter Sh­a­gun Ka­pur Go­gia and son Gau­rav Ka­pur. The posts of chair­man and man­ag­ing di­rec­tor fall va­cant in June and Au­gust 2014, re­spec­tively. Cur­rently, co-pro­moter Rana Kapoor is the MD & CEO and MR Srinivasan is the chair­man at the pri­vate sec­tor bank. Madhu Ka­pur and her fam­ily mem­bers de­cided to ap­proach the reg­u­la­tor af­ter the Yes Bank board and Rana Kapoor re­fused to take note of their de­mand for joint nom­i­na­tion and ap­point­ment of a con­sul­tancy firm to iden­tify a suit­able can­di­date for the post of chair­man and MD. Re­spond­ing to ET’s email query, a Yes Bank spokesper­son said: “We have in the past con­sis­tently main­tained that as a mat­ter of pol­icy the Bank does not com­ment on mat­ters which are pend­ing be­fore court, as the same has an ef­fect of in­ter­fer­ing with the ad­min­is­tra­tion of jus­tice. There­fore, the Bank is not com­ment­ing on the is­sues, ex­cept in terms that it re­it­er­ates its po­si­tion as taken be­fore the Hon’ble Bom­bay High Court. The same con­clu­sively con­tests and re­buts po­si­tion placed by Madhu Ka­pur. Hence, the al­le­ga­tions in this re­gard are strongly de­nied.” Yes Bank has taken a strong ob­jec­tion to the al­le­ga­tions made by Madhu Ka­pur’s fam­ily. In her let­ter, Ms Ka­pur has al­leged that Rana Kapoor is mis­us­ing his po­si­tion as MD of the bank. “The re­sources of the bank are be­ing used by Mr Rana Kapoor to di­rectly and in­di­rectly deny us our rights, in­clud­ing us­ing the bank and in­de­pen­dent di­rec­tors as a front to raise un­ten­able pre­lim­i­nary ob­jec­tions,” said the let­ter.

The let­ter also al­leges that “in­de­pen­dent di­rec­tors have at the cost of the Bank filed ap­peals in re­spect of the mat­ters which do not con­cern them and ben­e­fit only Mr Rana Kapoor.”

The posts of chair­man, cur­rently held by MR Srinivasan, and MD, held by Rana Kapoor, fall va­cant in June and Au­gust 2014, re­spec­tively

“…you are re­quested to give no ap­proval to the ap­point­ment of any per­son as chair­man and man­ag­ing di­rec­tor of the bank un­less it is jointly rec­om­mended by Rana Kapoor and us (suc­ces­sors of late Ashok Ka­pur) as per the Ar­ti­cles of As­so­ci­a­tion” De­scrib­ing the con­tents of the let­ter as “defam­a­tory al­le­ga­tions”, the Yes Bank spokesper­son said: “Please note that the Bank not only func­tions in a strongly-reg­u­lated sec­tor, sub­ject to the over­sight of the Re­serve Bank of In­dia, but also the ap­point­ment of MD and CEO has been ap­proved by RBI.” The Ka­purs have re­quested the cen­tral bank to en­sure that Yes Bank fol­lows cer­tain gov­er­nance stan­dards and take share­hold­ers’ ap­proval prior to im­por­tant ap­point­ments. They al­lege that the ap­point­ment of MR Srinivasan as part-time chair­man of Yes Bank and his re­mu­ner­a­tion pack­age were not ap­proved by the bank’s share­hold­ers. Ka­pur and Yes Bank are locked in a le­gal bat­tle over whether Madhu Ka- pur and her suc­ces­sors have a right to nom­i­nate a di­rec­tor on the board of Yes Bank. While Ka­pur main­tains that be­ing a le­gal heir, she in­her­its the rights as­so­ci­ated with the share­hold­ing, the Yes Bank man­age­ment has ar­gued that she has no such right. Last year, the bank had turned down a pro­posal to in­duct Sh­a­gun Go­gia, daugh­ter of Ka­pur, to the board cit­ing that she does not qual­ify for the po­si­tion. Madhu Ka­pur holds 11.92% stake in Yes Bank. Rana Kapoor, the other co­founder who heads Yes Bank di­rectly and through other fam­ily-owned ven­tures, holds a 13.64% stake. Madhu Ka­pur and Rana Kapoor’s wife Bindu Kapoor are sis­ters.


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