The Bombay High Court on Thursday did not provide any ad-interim relief to Yes Bank co-founder Ashok Kapur’s widow Madhu Kapur, who had sought a stay on the appointment of two directors to the board of the bank.
Madhu Kapur is the sister of Rana Kapoor’s wife Bindu Kapoor. Kapur, who is contesting with founder Rana Kapoor on having a say in the formation and composition of the board of directors of Yes Bank, had opposed the appointments of MR Srinivasan and Diwan Arun Nanda, citing their ages.
The Bombay high court rejected the notice of motion filed by Kapur seeking a stay on the appointments that had been approved by the shareholders of Yes Bank at the annual general meeting held on June 6.
“Diwan Arun Nanda and MR Srinivasan shall assume office with immediate effect. The Hon’ble Court has also prima facie validated the appointments of Diwan Arun Nanda and Ajay Vohra as independent directors on the Board of Yes Bank, stating that their appointment at the 11th annual general meeting, in terms of the Companies Act, 2013, is in compliance with the observations made by the Hon’ble Court in its judgment dated June 4, 2015,” Yes Bank said in a statement to the Bombay Stock Exchange.
Kapur’s objection was on the grounds that as per norms independent and non-executive directors of private sector banks have to be between 35-70 years of age. The two directors have crossed the said age limit. Yes Bank had sought the RBI’s approval which had allowed the directors be part of the board till October 2016.
When contacted, Shagun Kapur Gogia, daughter of Madhu Kapur said that the age limit of the two directors, was the main issue. “The court has asked both sides to file amendments to the notice by June 22. The RBI approval to the appointments of the two directors was till the end of their current term. However in the notice to the AGM, Yes Bank had sought shareholders approval for five years,” she told HT.
Earlier, Kapur, who owns 10.28% of the bank, had sought nomination of Shagun Kapur Gogia to the board of Yes Bank and had moved the Bombay HC opposing the AGM’s resolution to re-appoint the two directors.
While the court did not grant injunction against the AGM, it had recorded Yes Bank’s statement that the two directors will not assume office till June 17, the date for the court’s hearing on the matter.