YES Bank silent over board decision on Shagun Kapur

Bank decides to file outcome directly to the court on Monday

The suspense over Shagun Kapur Gogia’s appointment to the YES Bank board will continue till Monday. That’s because the bank has decided not to disclose the outcome of today’s board meeting till it is submitted to the Bombay High Court.



After a two-hour meeting, the outcome was kept in a sealed envelope with the company secretary, a person aware of the development, saying,  “As per legal advice, it will be submitted directly to the court," added the person, who did not want to be named.

 

“As the matter is sub judice, the final decision of the board on the subject will be submitted to the court at its scheduled hearing on July 1 as per the court order," the bank said in an early morning press statement.
 

Anticipating huge media attention, there was high security at YES Bank's corporate headquarters in Worli, where additional personnel were deployed to restrict entry to the bank premises. Security persons armed with walkie-talkies were busy patrolling the entire building premises to prohibit access to any unauthorised person into the area, where the  board meeting was being held.

Two weeks ago, the Bombay High Court directed YES Bank to advance its board meeting to June 27 to consider appointment of Gogia as a director on the board. Earlier, YES Bank was to hold the board meeting on July 24 to consider Gogia's appointment. The court had posted the matter for next hearing on July 1.

Gogia is the daughter of Ashok Kapur, who had co-founded YES Bank with his brother-in-law Rana Kapoor in 2004. Ashok Kapur was killed in the November 2008 terror attacks in Mumbai, following which his stake in the bank was transferred to his wife Madhu Kapur.

Madhu Kapur had sent a written request to Rana Kapoor and YES Bank chairman M R Srinivasan on June 5, to induct her daughter as her nominee on the bank’s board.

Rana Kapoor wrote back citing regulatory issues regarding Gogia's induction, following which Madhu Kapur filed a petition in the Bombay High Court seeking a stay on the annual general body, where there was a resolution to appoint three new directors of the bank. While the court refused to grant the stay, it said the appointment of the three directors would be subject to further directions from it.