Yes Bank board rejects Mahdu Kapur's ownership rights
29 April 2014
The split in the board of Yes Bank continues, as the hitherto successful Indian bank has once again rejected Madhu Kapur's claim to own promoter shares.
The board on Monday rejected the conditions of Madhu Kapur, widow of co-promoter Ashok Kapur, to accept her as an Indian partner or promoter, according to a person in the know of the developments.
''The board decided that Madhu Kapur, being successor of late Ashok Kapur, cannot be considered as Indian partner or India promoter, and accordingly, cannot inherit the rights under Articles of Association or the status of promoter of YES Bank.
''While Ashok Kapur, was indeed a co-promoter, on the basis the of deliberation and expert advise, it is abundantly clear that financial family successors do not automatically become part of the promoter group given the regulatory criteria for bank promoters.''
On 15 April, the Bombay High Court had asked both parties to solve the dispute amicably out of court. But the talks failed, and the court will hear both the parties today (See: HC tells YES Bank promoters to settle dispute out of court ).
Yes Bank's decision to not recognise Madhu Kapur as co-promoter of the bank has almost ruled out the possibility of settling the dispute outside the court. Madhu Kapur, widow of the bank's co-founder Ashok Kapur, will continue the legal battle, seeking her right to nominate directors on the private sector lender's board.