HEADLINES:
October 22 2019
Yes Bank promoters yet to close ranks
22 November 2018

Co-promoter Madhu Kapur has not got any proposal from MD & CEO Rana Kapoor, say sources

Even as efforts are under way to resolve disputes among the Yes Bank promoters — Rana Kapoor and Madhu Kapur & family, Madhu Kapur is yet to receive any formal proposal from Mr. Kapoor, it is learnt.

Sources indicated that the Madhu Kapur family had also not been consulted in the process for selecting the next MD & CEO

Mr. Kapoor, sources said, approached Ms. Kapur’s family about three weeks ago for a resolution. However, things had not moved further.

“As a significant shareholder and a promoter, Madhu Kapur family wants their rights to be honoured and maintained, which are there in the article of association. They have informed Mr. Kapoor of their position, when approached. But since then, nothing has moved. Madhu Kapur & family has not received any concrete proposal so far,” said a source. Rana Kapoor holds 10.64% stake in the bank. Madhu Kapur & family have 9.27%.

“It is being reported by the MD & CEO Rana Kapoor that efforts are under way for mutual resolution with Ms. Madhu Kapur & family, the co-promoter of the bank. This is intended to ensure better support and coordination by the 2 promoter-groups with the board of directors of the bank,” Yes Bank said in a filing with the exchanges on Tuesday.

The tussle broke out five years ago, when the Kapur family had alleged that their rights were denied and moved the Bombay High Court. The Kapur family had always maintained that the article of association allowed them to nominate three directors jointly, nominate executive directors and also allowed them to give recommendations for managing director and chairman. “These are all joint rights,” the source clarified.

The search & selection committee and the nomination & remuneration committee will meet on December 12 to discuss the final shortlist for new MD & CEO appointment. The search for new MD & CEO was started after the Reserve Bank of India declined to extend Mr. Kapoor’s term beyond January 31, though the board had endorsed a three- year extension till August 2021.

The resolution efforts come at a time when the lender is fighting a series of board-level resignations. Ashok Chawla - a former bureaucrat and the current chairman of the NSE - resigned from the post of non-executive chairman last week. Mr Chawla has been named in the CBI chargesheet in the Aircel-Maxis case. There were more board levels resignations since then — Basant Gujarathi and Rentala Chandrashekhar.

 

 

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