Yes Bank : Update

Advaniji's resignation announcement overshadows today's equally important news. One among them is Yes Bank director election. YES Bank's rejection in 2009 for its board the candidature of a double-graduate in economics and biology, a masters in business administration, with deal making experience at Rabo and ICICI Venture Funds, was simply atrocious ."In case of a listed bank where a family has a large holding , it is best to sit together and sort out the issues in case of any disagreements between the family members as going to the court will not help anyone,'' said Deepak Parekh, chairman of Housing Development Finance Corp and an elder statesman of Indian finance in the Economic Times. It further adds that the bank did not respond to questions whether Gogia was interviewed, or whether the board communicated to her that she may face regulatory obstacles. Shagun and her mother Madhu declined to speak too. Ashok Kapur's family, now headed by his wife Madhu Kapur after he was killed in the November 2008 terrorist attack in Mumbai's Oberoi Hotel, wants the family to be at least consulted on the nomination of directors though they still believe Shagun is qualified to be a director. Shagun, a student of Lawrence School in Sanawar, has graduated in economics and biology from Tufts University, Boston. She went on to secure a post graduation in management from the Indian School of Business, Hyderabad that helped her set foot in the world of finance as an executive at Rabo Finance and secure a position at ICICI Venture Funds Management, the nation's largest private equity fund. Shagun now runs her private equity fund Tuscan Ventures Pvt. Ltd.

"Three resolutions pertaining to the appointment of Diwan Arun Nanda, Ravish Chopra and M R Srinivasan, whose appointments were earlier approved by the board, were put to vote following request by a shareholder.."Overall 57 per cent of the total shareholder ownership votes were polled, and the general body of the shareholders passed all the three resolutions with an overwhelming majority of about 80 per cent and elected all the three aforesaid directors," the city-based bank said in a statement. It was alleged that votes of many shareholders who were neither present, nor sent proxies, were found during the counting. The voting was open for too long for the management to bring in many executives with employee stock options to tilt scales in its favour. Madhu Kapur holds 12% of the bank, while Rana Kapoor owns 13.7%.

Today the Bombay High Court has directed YES BankBSE to consider an appointment of Sagun Gogia as the director on the board .Business Standard reports that" a source indicated that the disagreement between the promoters is primarily over the right to nominate directors on the board of the bank"."Whether or not Shagun should be appointed is secondary. As per the articles of association, the family of Ashok Kapur has the right to nominate directors on the bank's board. That right needs to be protected," the person said adding that the dispute could be resolved if the bank allows Madhu Kapur to nominate directors.Another person also confirmed that both the parties were in favour of an out-of-court settlement. "Both the groups need to reach an agreement but I am confident that it is possible," the source said.

Let's hope, the wisdom prevails .


 

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