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

The Economic Times - - Markets + Finance -

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.

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