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The Bombay High Court on monday directed YES Bank to advance its board meeting to June 27 to consider the appointment of its late founder’s daughter Shagun Kapur Gogia as the director on the bank’s Board.
Earlier, the mid-sized private sector bank was to hold the board meeting on July 24. The next hearing by the High Court on the appointment of the directors will be on July 1.
Gogia is the daughter of Ashok Kapur, who had co-founded YES Bank with his brother-in-law Rana Kapoor in 2004. Ashok Kapur passed away in the 26/11 terror attacks following which his stake in the bank was transferred to his wife Madhu Kapur.
Lawyers of Madhu Kapur and her daughter Gogia told the court that the voting for the election of three board of directors – Diwan Arun Nanda of advertising firm Rediffusion, banker Ravish Chopra and nuclear scientist M.R. Srinivasan, was not in consultation with them as per shareholders’ rights.
YES Bank on monday announced that Diwan Arun Nanda, Ravish Chopra and M.R. Srinivasan were elected as directors at the bank’s ninth annual general meeting held on Saturday. A poll was conducted and the general body of shareholders passed the resolutions relating to their appointment with a majority of 80 per cent in their favour.
The judge said "The bank must advance its board meeting to June 27 and consider the recommendation of appointing Gogia on the Board...without aggravating the situation."
The confirmation of the three directors now remains delayed till June 27.
The YES Bank stock ended down 2.57 per cent at Rs 490.15 on the Bombay Stock Exchange.
Earlier, the mid-sized private sector bank was to hold the board meeting on July 24. The next hearing by the High Court on the appointment of the directors will be on July 1.
Gogia is the daughter of Ashok Kapur, who had co-founded YES Bank with his brother-in-law Rana Kapoor in 2004. Ashok Kapur passed away in the 26/11 terror attacks following which his stake in the bank was transferred to his wife Madhu Kapur.
Lawyers of Madhu Kapur and her daughter Gogia told the court that the voting for the election of three board of directors – Diwan Arun Nanda of advertising firm Rediffusion, banker Ravish Chopra and nuclear scientist M.R. Srinivasan, was not in consultation with them as per shareholders’ rights.
YES Bank on monday announced that Diwan Arun Nanda, Ravish Chopra and M.R. Srinivasan were elected as directors at the bank’s ninth annual general meeting held on Saturday. A poll was conducted and the general body of shareholders passed the resolutions relating to their appointment with a majority of 80 per cent in their favour.
The judge said "The bank must advance its board meeting to June 27 and consider the recommendation of appointing Gogia on the Board...without aggravating the situation."
The confirmation of the three directors now remains delayed till June 27.
The YES Bank stock ended down 2.57 per cent at Rs 490.15 on the Bombay Stock Exchange.
To raise Rs 500 m
Meanwhile, the bank plans to raise $500 million during this year through a combination of instruments aimed largely at institutional investors. In a press release, YES Bank said that the shareholders gave their nod to the fund-raising proposal at the bank’s AGM held on June 8.
According to YES Bank MD and CEO, Rana Kapoor, the bank would raise this amount “potentially through GDRs (global depositary receipts) in combination with a QIP (qualified institutional placement) and domestic institutional investors (DIIs) in order to ensure fullest and widest participation of all investor classes’’.
According to the BSE data, the promoters hold 25.72 per cent stake in the equity of the bank, while FIIs hold 48.95 per cent as at the end of March 31, 2013. DIIs hold 13.23 per cent equity and others hold 12.10 per cent.
Source: thehindubusinessline
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