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YES Bank on Friday said that two of its Directors, MR Srinivasan and Diwan Arun Nanda, will not assume office till June 17, if they are re-elected at the bank’s AGM on Saturday.
The bank said that this was being done with an intention to amicably resolve the matter with Madhu Kapur.
On Friday, Madhu Kapur challenged the re-appointment of whole-time directors Nanda (independent) and Srinivasan (non-executive) slated for approval in the AGM on Saturday. Their re-appointment was challenged in the High Court on the grounds that independent/non-executive directors at private sector banks have to be between 35-70 years of age.
Both have crossed the age limit.
Earlier, the bank had sought the Reserve Bank of India’s approval for the same and the regulator had allowed both of them to be a part of the board till October 2016.
In a statement, YES Bank said, “In a spirit consistent with an intention to amicably resolve the matter, the bank has offered that MR Srinivasan and Diwan Arun Nanda, upon election, at the AGM will not assume office time June 17, 2015.”
“The Hon’ble Bombay High Court has not granted an injunction against the business to be taken up at the 11{+t}{+h} 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 statement added.
“This includes approval of re-appointment of the two directors,” the bank said ahead of its 11{+t}{+h} AGM. YES Bank and Madhu Kapur have been at loggerheads for over two years.
On Thursday, the Bombay High Court did not make its order public and allowed YES Bank and Madhu Kapur to resolve dispute through mediation.
The matter has been listed in the court for June 17. YES Bank statement added, “The Bank is not in a position to state anything further in this regard, given the directions of the Hon’ble Bombay High Court.”
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