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Yes Bank board rejects Shagun Gogia nomination

Board cites RBI ‘prescriptions in the matter and applicable laws and regulations’ for turning down application
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First Published: Sat, Jun 29 2013. 07 24 PM IST
Yes Bank managing director and chief executive officer Rana Kapoor. Photo: Mint
Yes Bank managing director and chief executive officer Rana Kapoor. Photo: Mint
Updated: Sun, Jun 30 2013. 06 46 PM IST
Mumbai: The board of directors at Yes Bank Ltd has “unanimously” turned down the application of Shagun Gogia to be nominated as a director on the board of the bank, in a meeting held on 27 June.
In a letter to Madhu Kapur, the bank’s company secretary Shivanand Shettigar said the board had not accepted Gogia’s nomination “in accordance with the terms of Reserve Bank of India (RBI) prescriptions in this matter and applicable laws and regulations...the past and current composition and profile of the board of the bank and current composition of the boards’ peer bank (Kotak Mahindra Bank Ltd) and three largest private sector banks.”
The letter has been reviewed by Mint.
“Based on the above and after extensive deliberations, the board of directors have unanimously agreed that the recommendation of Mrs Shagun Gogia made by you should not be accepted,” the letter addressed to Madhu Kapur dated 28 June 2013 said.
Kapur, the widow of Yes Bank co-founder Ashok Kapur, has demanded the right to nominate a director on the bank’s board. Gogia, her daughter, had on 17 June filed her nomination for a seat on the board as directed by the court on 11 June. The case will come up for hearing on Monday.
Kapur is also the sister-in-law of Yes Bank managing director and chief executive officer (CEO) Rana Kapoor.
Rana Kapoor had “voluntarily recused himself while the said agenda item was being considered in the nomination and governance committee meeting and in the subsequent meeting of board of directors of Yes Bank,” the letter concludes.
When contacted, Shagun Gogia confirmed she had received the letter “late evening on Friday.” “I would not like to comment further till the next court hearing on Monday,” she said.
On Friday, Yes Bank had promoted three people from its senior management team as executive directors, giving them a board seat as wholetime directors.
The promotions are subject to RBI’s and shareholders’ approval, the bank had said in a statement to the Bombay Stock Exchange (BSE).
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First Published: Sat, Jun 29 2013. 07 24 PM IST
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