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Corporate Jun 30, 2013

YES Bank rejects Shagun Gogia’s nomination to board

Mumbai: Private sector lender YES Bank's board has declined to nominate Shagun Gogia as a nominee director, a development that is set to prolong the bitter tussle between the promoter families.

Gogia is the daughter of bank co-founder Ashok Kapur, who was killed in the November 2008 terror attacks in the city. She was nominated by her mother Madhu Kapur as the legal heir to her deceased husband's 12 percent stake in the bank.

The board's decision was taken at its June 27 meeting, which was convened as per an order of the Bombay High Court.

Earlier in 2009, the bank's board had rejected the appointment of Shagun Gogia as a board member after the death of Ashok Kapur in 2009. AFP

Earlier in 2009, the bank's board had rejected the appointment of Shagun Gogia as a board member after the death of Ashok Kapur in 2009. AFP

In a letter addressed to Madhu, the bank said, "The board of directors has unanimously agreed that the recommendation of Shagun Gogia made by you should not be accepted."

YES Bank's board met on Thursday afternoon after the Bombay High Court directed the bank to advance its board meeting by a month and consider Gogia's appointment. The board meeting was originally scheduled on July 24, 2013.

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The Bombay High Court had directed the bank to consider Kapur's nomination after the family challenged the nomination of two directors by co-founder Rana Kapoor who is the CEO and MD of the bank.

The letter says the submissions made in support of Gogia's candidature were extensively deliberated by the board "in accordance with the terms of Reserve Bank prescriptions" and after considering the composition of the past and current board of the bank.

"The Board also evaluated the submissions considering the past and current composition and profile of the Board of the Bank, and current composition of the Board's peer bank (Kotak Mahindra Bank) and the three largest private banks," the letter said.

While Gogia confirmed receipt of the letter, the bank's spokesperson refused to comment saying "the matter is subjudice".

With inputs from PTI


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