Rana Kapoor’s 2nd Term in HC Hands
Bombay HC asks Yes Bank to conduct e-voting on appointments of Kapoor and two other board members
ANITA BHOIR & MAULLIK VYAS
The Bombay High Court has said the appointment of Rana Kapoor as managing director and chief executive of Yes Bank and that of two other board members will be subject to its final ruling on the matter. The court’s remark came in a case involvingMadhuKapur,widowof YesBank co-founder Ashok Kapur, and the lender over the former’s complaint that she was not consulted in the appointment.
On Friday, Justice SC Gupte said the bank can carry out e-voting among shareholders on the appointments of Kapoor, and Ravish Chopra and M Srinivasan as independent director and chairman, respectively, between June 4 and 6. The result of the voting would be announced at the bank’s annual general meeting scheduled for June 14. The court will hear the matter on June 12.
The posts of chairman and managing director fall vacant in June and August, respectively. Madhu Kapur has challenged the proposed re-appointment of Kapoor as the bank’s managing director and CEO. Kapoor is a co-promoter of the bank. Kapur has also objected to the appointments of Chopra and Srinivasan. Kapur says she has equal right to nominate a director and that she has been deprived of her legal rights since she inherited the shareholding in the bank. Kapur was not available for comments. ET’s e-mail query to Yes Bank on the development remained unanswered.
Recently, Kapur had sought RBI’s intervention to prevent Kapoor from being nominated 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,” Kapur had said in a letter to RBI deputy governor.