Rana Kapoor, MD & CEO of YES Bank, has initiated settlement talks with Madhu Kapur, the wife of late co-promoter Ashok Kapur, in an effort to end the family dispute over nomination rights to the bank's board, said two persons aware of the development. They cautioned that there is no certainty that these talks would be successful.
"Rana Kapoor and Bindu Kapoor met with the Madhu Kapur family on Saturday. Both the families were involved in a day-long discussion on ways to resolve the conflict," said one of the persons aware of the ongoing talks. Both spoke on condition of anonymity because of the sensitivity of the matter. Bindu Kapoor, the wife of Rana Kapoor, is Madhu Kapur's sister. The Madhu Kapur family was not available to comment. Responding to an email query, a YES BankBSE -3.06 % spokesperson said, "As the matter is sub judice, we cannot comment on your queries."
"Rana Kapoor has offered to acknowledge Madhu Kapur as co-promoter to resolve the conflict. However, this would be without any nomination rights," said one of the persons quoted earlier. The families of the founders of the bank - the late Ashok Kapur and Rana Kapoor - are locked in a legal dispute over the Madhu Kapur group's claim to a right to nominate a representative to the board of the bank. The High Court will hear the matter on August 12. Ashok Kapur died during the 26/11 terror attacks at the Oberoi Hotel in Mumbai.
In 2009, the board declined to appoint Shagun Gogia, daughter of the late Ashok Kapur, because the board was of the view that she might not pass muster with the Reserve Bank of India's fit-and-proper criterion. The matter resurfaced in June 2013, when the Madhu Kapur group objected to the appointment of six directors and pressed for the nomination of Gogia.
Recently, the bank board had considered Gogia's candidature for directorship on a Bombay HC suggestion. However, the board rejected her application citing inexperience and the composition of large bank boards such as ICICI Bank with which YES Bank benchmarks itself. Madhu Kapur holds 12% in the bank while Rana Kapoor owns 13.72%.
"Rana Kapoor and Bindu Kapoor met with the Madhu Kapur family on Saturday. Both the families were involved in a day-long discussion on ways to resolve the conflict," said one of the persons aware of the ongoing talks. Both spoke on condition of anonymity because of the sensitivity of the matter. Bindu Kapoor, the wife of Rana Kapoor, is Madhu Kapur's sister. The Madhu Kapur family was not available to comment. Responding to an email query, a YES BankBSE -3.06 % spokesperson said, "As the matter is sub judice, we cannot comment on your queries."
"Rana Kapoor has offered to acknowledge Madhu Kapur as co-promoter to resolve the conflict. However, this would be without any nomination rights," said one of the persons quoted earlier. The families of the founders of the bank - the late Ashok Kapur and Rana Kapoor - are locked in a legal dispute over the Madhu Kapur group's claim to a right to nominate a representative to the board of the bank. The High Court will hear the matter on August 12. Ashok Kapur died during the 26/11 terror attacks at the Oberoi Hotel in Mumbai.
In 2009, the board declined to appoint Shagun Gogia, daughter of the late Ashok Kapur, because the board was of the view that she might not pass muster with the Reserve Bank of India's fit-and-proper criterion. The matter resurfaced in June 2013, when the Madhu Kapur group objected to the appointment of six directors and pressed for the nomination of Gogia.
Recently, the bank board had considered Gogia's candidature for directorship on a Bombay HC suggestion. However, the board rejected her application citing inexperience and the composition of large bank boards such as ICICI Bank with which YES Bank benchmarks itself. Madhu Kapur holds 12% in the bank while Rana Kapoor owns 13.72%.
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