YES Bank shareholders okay Rana's reappointment

Shareholders of private sector lender YES Bank have cleared all the 12 resolutions that were put to vote on Saturday last at the bank's tenth annual general meeting (AGM) here.

So much so, over 67 per cent of the shareholders had participated in the voting during the week-end as compared with 57 per cent in the previous year (2012-13)

Apart from the financials, resolution on re-appointment of Rana Kappor as managing director and chief executive officer (MD & CEO) of YES Bank, along with the appointment of other directors was also put to vote.

M R Srinivasan, non-executive chairman, YES Bank said that, "The result of the AGM is thereby a self explanatory reflection of the shareholders' (institutional and retail) view out rightly rejecting the untenable and base issues raised by the second largest shareholder."

Madhu Kapur, the second largest shareholder, had moved court, claiming her right as the bank's co-promoter was violated and she wasn't consulted before the bank had appointed a few directors on its board.

Kapur's daughter Shagun Kapur Gogia had also applied to be a member of the bank's board, in June 2013, but the board had rejected her nomination on the basis that she lacked sufficient experience.

Rana Kapoor, MD & CEO of YES Bank, reiterated in a statement that that no member of his family will ever be part of the bank's management or board.

Currently, Rana Kapoor has 11.87 per cent stake where as Madhu Kapur and her company owns 10.37 per cent.  Kapur's husband-Ashok Kapur had co-founded YES Bank with his brother-in-law Rana Kapoor. Madhu Kapur and Rana Kapoor's wife Bindu are sisters.

In the previous court hearing on June 12, the Bombay High Court had rejected Kapur's application for grant of any ad-interim relief against passing of resolutions at AGM.

Now, Kapur is likely to file a revised petition against the appointments this week. The final court hearing is on July 23.