Madhu Kapur moves Bombay HC to stop appointment of Yes Bank directors

MUMBAI: Madhu Kapur, widow of Yes Bank co-founder Ashok Kapur, today moved the Bombay High court opposing a resolution, slated to come up at the 11th annual general meeting of the Bank tomorrow, appointing two directors on its board.

However, Yes Bank made a statement before the court assuring that the two directors -- M R Srinivasan and Diwan Arun Nanda -- shall not assume office until the next hearing on June 17.

Justice Gautam Patel recorded the statement and deferred the matter to June 17. The court did not grant any injunction against the AGM or passing of resolutions therein.

Kapur contended that these directors had attained the age of 70 years and RBI guidelines permit appointment of directors who are in the age group of 35 to 70 years.

However, Yes Bank submitted that RBI has expressly granted a special dispensation to M R Srinivasan and Diwan Arun Nanda until October 2016, as per AGM Notice dated April 22, 2015.

Yes Bank said in a statement here "the Bank has offered that Srinivasan and Diwan Nanda, upon election at the AGM, will not assume office till June 17."

In the two-year-old suit filed by Madhu Kapur, the High Court had earlier asked both the sides to settle the dispute amicably by June 2 with regard to the right to nominate directors.

Kapur's husband Ashok Kapur, co-founder of Yes Bank, was killed during the 26/11 Mumbai terror attacks. Madhu Kapur holds 10.28 per cent shares in the bank jointly with her children and is seeking nomination of her daughter Shagun Kapur Gogia on the Bank's board as a director.