The Board of Yes Bank, which met on June 27, has rejected the application of Shagun Gogia, the daughter of late co-founder Ashok Kapur, for her nomination to the bank’s Board. The decision was communicated by the company secretary to Madhu Kapur, wife of late Ashok Kapur, and mother of Shagun Gogia, said sources.
Sources said the letter states that the Board unanimously rejected the nomination of Gogia. “The Board considered the past and current composition of the Board of Yes Bank and took into account the profile of boards of peer private banks. Based on the above, the Board unanimously agreed that your recommendation for the board was not acceptable,” states the letter, addressed directly to Madhu Kapur. The letter adds that Rana Kapoor recused himself from the meeting of the nominations committee and the Board of directors, said sources.
Yes Bank had been asked by the Bombay High Court to advance its Board meet from the earlier scheduled date of July 24 after Madhu Kapur filed a petition, seeking that the family’s nomination to the bank’s Board be considered. Subsequently, Gogia filed her application for a seat on the Board for the second time since 2009. Her first attempt had been turned down for not meeting the RBI’s fit and proper criteria for board members. Incidentally, the letter sent by the Board once again states that the “Board reviewed their nomination in accordance with the RBI’s fit & proper criteria”.
When contacted, the bank said the decision will be communicated to the court in keeping with its directive. A hearing is scheduled for Monday, July 1.
The Kapur family was not willing to comment before the court ruling on Monday. However, sources close to the family had recently indicated that if Gogia is rejected, the family might consider another nomination. “The Kapur family is willing to nominate another person if the Board gives it a chance,” sources said.