 "Bombay HC reserves final order in YES Bank case for May 12")
A two-year-old courtroom battle between YES Bank and Madhu Kapur, widow of co-founder Ashok Kapur, might come to an end in the high court here on Tuesday. On Thursday, the court suggested both parties should try and settle the dispute amicably, adding the final order was reserved for Tuesday.
The judge, Gautam Patel, suggested for the normal functioning of the bank, the promoters should consider reducing their stakes below 10 per cent. If the shareholding is brought this limit, a conflict over the nomination of an Indian partner representative director will be resolved, as both sides will end up forfeiting their rights.
At the end of March this year, Rana Kapoor, managing director and chief executive of the bank, owned 11.77 per cent stake, while the stake of Kapur and her family stood at 10.29 per cent.
The judge also said both parties had the right to nominate directors, adding Ashok Kapur’s family inherited his rights, a bone of contention between the two parties.
Ashok Kapur had co-founded YES Bank with his brother-in-law, Rana Kapoor. Madhu Kapur and Rana Kapoor’s wife, Bindu Kapoor, are sisters.
Madhu Kapur, the second-largest shareholder in the bank had moved court, claiming her rights as the bank’s co-promoter were violated and she wasn’t consulted before the bank had appointed new directors on its board. Kapur’s daughter, Shagun Kapur Gogia, had applied for the position of board member in June 2013, but the board had rejected her nomination, saying she lacked the required experience.
The judge, Gautam Patel, suggested for the normal functioning of the bank, the promoters should consider reducing their stakes below 10 per cent. If the shareholding is brought this limit, a conflict over the nomination of an Indian partner representative director will be resolved, as both sides will end up forfeiting their rights.
At the end of March this year, Rana Kapoor, managing director and chief executive of the bank, owned 11.77 per cent stake, while the stake of Kapur and her family stood at 10.29 per cent.
The judge also said both parties had the right to nominate directors, adding Ashok Kapur’s family inherited his rights, a bone of contention between the two parties.
Ashok Kapur had co-founded YES Bank with his brother-in-law, Rana Kapoor. Madhu Kapur and Rana Kapoor’s wife, Bindu Kapoor, are sisters.
Madhu Kapur, the second-largest shareholder in the bank had moved court, claiming her rights as the bank’s co-promoter were violated and she wasn’t consulted before the bank had appointed new directors on its board. Kapur’s daughter, Shagun Kapur Gogia, had applied for the position of board member in June 2013, but the board had rejected her nomination, saying she lacked the required experience.