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Tuesday, July 9, 2013

YES Bank case: Madhu Kapur to challenge appointment of whole-time directors

Madhu Kapur, widow of YES Bank co-promoter Ashok Kapur, has opened another flank in her dispute with the private sector lender.

In her amendments to her original suit against the bank, Kapur has decided to challenge the June 27 decision of the board to appoint Rajat Monga, Sanjay Palve and Pralay Mondal as whole-time directors.

The position taken by Kapur in the amendment is that the bank’s Articles of Association require a recommendation by the “promoters” for appointment of the whole-time directors.

The amendment says that as ‘successors and the legal representatives of the late Ashok Kapur, Madhu Kapur family’s concurrence or recommendation for the appointment of the directors was not sought.’

Further, the amendment points out that two of the three directors who were elected in the AGM last month did not meet the age criteria of 35-65 years, as prescribed by the RBI circulars. The bank on July 1 had rejected the nomination of Shagun Gogia, daughter of Madhu Kapur, as an independent director on board.

The Kapur family holds 11.7 per cent stake in the company while, co-promoter Rana Kapoor, who is the current MD and CEO, holds 13.7 per cent.

The counsel of Madhu Kapur is likely to tender the amendments to the original suit on Thursday.

YES Bank opposed the amendments sought by Kapur and, hence, the Bombay High Court has directed Kapur to file the amendments as per the court procedures.

The next hearing is likely to be held on July 15.

The list of amendments sought to be made was submitted before the court on Monday. The bank’s lawyers have opposed certain amendments made by Kapur.

Kapur’s counsel has also asked the court to direct the bank to furnish a copy of the video recording of the 9th Annual General Meeting of the bank.

Source: thehindubusinessline


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