YES Bank has rejected the nomination of Shagun Gogia as a Director on its Board for the second time, according to sources privy to the development.
This follows almost a month-long tussle between the families of YES Bank founders. Shagun Gogia, daugher of late Ashok Kapur, co-founder of the YES Bank, and her mother Madhu Kapur had earlier raised objections about the nomination of three other directors on the board and said they were not consulted. The election of the three was conducted at the AGM concluded recently where all the three directors polled nearly 80 per cent of the votes.
Subsequently, Shagun Gogia is learned to have sent in a request to be nominated on the board. The nomination and governance committee of the bank has rejected her nomination.
The CEO and Managing Director Rana Kapoor recused himself from the meeting.
The bank is learned to have consulted an eminent jurist on the issue.
A bank statement said “As the matter is sub-judice, the final decision of the board of directors of YES Bank on the subject will be submitted to the Bombay High Court.”
PTI report adds: The Bombay High Court will hear on Monday a petition filed by Madhu Kapur seeking a direction to YES Bank’s board to take her daughter Shagun Kapur Gogia as a nominee director.
Gogia was nominated by her mother Madhu Kapur as the legal heir to her deceased husband’s 12 per cent stake in the bank. YES Bank was founded by Kapur and Rana Kapoor, who is married to Madhu’s younger sister Bindu.
The tussle between the promoter families is over a board seat in YES Bank. Rana Kapoor owns 13.7 per cent in the bank.