 "HC refuses to stay YES Bank directors' appointment")
The Bombay High Court has not provided any ad interim relief to Madhu Kapur, the second-largest promoter of YES Bank, who has been seeking a stay on the reappointment of two directors — M R Srinivasan (non-executive director) and Diwan Arun Nanda (independent director).
Kapur had raised objection to the reappointment of the two directors, which has been already approved by the shareholders at the annual general meeting held earlier this month.
This reservation was raised on the grounds that according to norms, independent/non-executive directors on private sector bank boards have to be between 35 and 70 years of age.
ALSO READ: Two YES Bank directors can't assume office till June 18: Bombay HC
However, the two have crossed the age limit. Earlier, the bank had sought the Reserve Bank of India (RBI)’s approval for the same and the regulator had allowed both of them to be a part of the board till October 2016.
Now, YES Bank will file an affidavit on the appointment of the two directors on June 22. The next day for hearing has been finalised as July 13.
YES Bank said the two directors will now assume office with immediate effect. “The court has also observed that the permission granted by RBI to Diwan Arun Nanda and M R Srinivasan cannot be the subject of an ad interim relief and nor is the court inclined to look behind the said permission,” the bank said.
This comes a day after the high court “impeached” the appointments of YES Bank directors Ravish Chopra, M R Srinivasan, Diwan Arun Nanda, Ajay Vohra, Rajat Monga, Sanjay Palve and Pralay Mondal.
Kapur had raised objection to the reappointment of the two directors, which has been already approved by the shareholders at the annual general meeting held earlier this month.
This reservation was raised on the grounds that according to norms, independent/non-executive directors on private sector bank boards have to be between 35 and 70 years of age.
ALSO READ: Two YES Bank directors can't assume office till June 18: Bombay HC
However, the two have crossed the age limit. Earlier, the bank had sought the Reserve Bank of India (RBI)’s approval for the same and the regulator had allowed both of them to be a part of the board till October 2016.
Now, YES Bank will file an affidavit on the appointment of the two directors on June 22. The next day for hearing has been finalised as July 13.
YES Bank said the two directors will now assume office with immediate effect. “The court has also observed that the permission granted by RBI to Diwan Arun Nanda and M R Srinivasan cannot be the subject of an ad interim relief and nor is the court inclined to look behind the said permission,” the bank said.
This comes a day after the high court “impeached” the appointments of YES Bank directors Ravish Chopra, M R Srinivasan, Diwan Arun Nanda, Ajay Vohra, Rajat Monga, Sanjay Palve and Pralay Mondal.