Kapoor vs Kapurs in Yes Bank tussle
Bank resorts to paper ballots for appointment of directors following differences among foundersbusiness Updated: Jun 10, 2013 03:57 IST
It’s Kapoor vs Kapur. The result of a keen boardroom tussle on appointment of new directors in Yes Bank will be unveiled on Monday, following a paper ballot during the weekend arising out of a clash between leading stakeholder and CEO Rana Kapoor and the family of the bank’s founder, late Ashok Kapur.
The board was set to approve the appointments of Diwan Arun Nanda, Ravish Chopra and MR Srinivasan as wholetime directors by voice vote.
The directors were backed by bank managing director and CEO Rana Kapoor who holds 13.72% stake in the bank, but were opposed by Madhu Kapur, wife of late Ashok Kapur and co-founder of Yes Bank.Madhu Kapur, who holds 12% stake in the bank, wanted a say in board appointments. So, when the subject was taken up, Kapur opposed the move, shareholders attending the AGM said.
Following this, members were asked to cast paper ballots and results will be known in 48 hours.
When contacted, an Yes Bank spokesperson refused to comment on the issue.
The events come a day after the Bombay High Court turned down a petition filed by Madhu Kapur objecting to the holding of AGM on the ground that the family was not consulted before the appointment of directors.
Ashok Kapur, who died in 26/11 terror attacks at the Oberoi Hotel in Mumbai, had co-founded the bank with his brother-in-law Rana Kapoor and Rabobank in 2004.
According to sources, the feud between families of the two founder members started in 2009 after the board declined to induct Shagun Gogia, the daughter of late Ashok Kapur, as a nominee board member.
The board of the bank had declined to induct Gogia saying she might not be eligible according to the “Fit and Proper” criteria laid down by the RBI, sources said.