 "Two YES Bank directors can't assume office till June 18: Bombay HC")
The High Court said on Friday that two directors on YES Bank’s board — M R Srinivasan (non-executive director) and Diwan Arun Nanda (independent director) — cannot assume office till June 18.
Madhu Kapur, second-largest shareholder of YES Bank, had raised an objection to the reappointment of the two directors at the annual general meeting (AGM) scheduled on Saturday, on the grounds that according to norms, independent/non-executive directors in private sector banks have to be between the ages of 35 and 70 years.
Though Srinivasan and Nanda have crossed the age limit, the bank had earlier sought the Reserve Bank of India’s approval for reappointment, which was granted till October 2016.
In a statement issued after the high court’s observation, YES Bank said the court “has not granted an injunction against the business to be taken up at the AGM as sought by the plaintiffs – Madhu Kapur and others. The appointments to the board at the AGM can all be taken up for voting. The matter has been listed next on June 17. In a spirit consistent with an intention to amicably resolve the matter, the bank has offered that M R Srinivasan and Diwan Arun Nanda, upon election, at the AGM will not assume official time June 17.”
The statement added: “The bank is not in a position to state anything further in this regard, given the directions of the Bombay High Court. Therefore, the AGM process shall be conducted in accordance with the notice sent to the shareholders for convening the 11th AGM.”
On Thursday, the court passed an order in the YES Bank and Madhu Kapur case. However, the order is yet to be made public. The judge had asked the two parties to go in for a further round of mediation.
Both parties would receive a copy of the order and the round of mediations will be based on it. The next hearing is scheduled for June 17.
Two years ago, Kapur had moved the court, claiming her right as the bank’s co-promoter was violated and she wasn’t consulted before the bank had appointed a few directors on its board. Kapur’s daughter, Shagun Kapur Gogia, had also applied to be a member of the bank’s board, in June 2013, but the board had rejected her nomination, on the basis that she lacked sufficient experience.
Madhu Kapur, second-largest shareholder of YES Bank, had raised an objection to the reappointment of the two directors at the annual general meeting (AGM) scheduled on Saturday, on the grounds that according to norms, independent/non-executive directors in private sector banks have to be between the ages of 35 and 70 years.
Though Srinivasan and Nanda have crossed the age limit, the bank had earlier sought the Reserve Bank of India’s approval for reappointment, which was granted till October 2016.
In a statement issued after the high court’s observation, YES Bank said the court “has not granted an injunction against the business to be taken up at the AGM as sought by the plaintiffs – Madhu Kapur and others. The appointments to the board at the AGM can all be taken up for voting. The matter has been listed next on June 17. In a spirit consistent with an intention to amicably resolve the matter, the bank has offered that M R Srinivasan and Diwan Arun Nanda, upon election, at the AGM will not assume official time June 17.”
The statement added: “The bank is not in a position to state anything further in this regard, given the directions of the Bombay High Court. Therefore, the AGM process shall be conducted in accordance with the notice sent to the shareholders for convening the 11th AGM.”
On Thursday, the court passed an order in the YES Bank and Madhu Kapur case. However, the order is yet to be made public. The judge had asked the two parties to go in for a further round of mediation.
Both parties would receive a copy of the order and the round of mediations will be based on it. The next hearing is scheduled for June 17.
Two years ago, Kapur had moved the court, claiming her right as the bank’s co-promoter was violated and she wasn’t consulted before the bank had appointed a few directors on its board. Kapur’s daughter, Shagun Kapur Gogia, had also applied to be a member of the bank’s board, in June 2013, but the board had rejected her nomination, on the basis that she lacked sufficient experience.