Srinivasan, Nanda can’t join Yes Bank board till 18 June: HC

Mumbai: The Bombay high court on Friday said two directors eligible for reappointment on the board of Yes Bank Ltd should not assume office till 18 June.

The appointments of Diwan Arun Nanda and M.R. Srinivasan as directors were among the resolutions put forward to the shareholders for the bank’s annual general meeting (AGM), which is to be held on Saturday. The order means both directors cannot assume office even if investors approve a fresh term.

“Two directors, Diwan Arun Nanda and M.R. Srinivasan should not assume office till 18 June. That is the only order passed today. The rest of the order cannot be made public,” justice G.S. Patel told journalists. The contents of the order are available to both parties. The media was kept out of the hearing, which followed the final order in the two-year-old case which was passed on Thursday.

Justice Patel has directed both parties to mediate on 17 June based on the final order.

Madhu Kapur had taken her brother-in-law, Yes Bank managing director and chief executive officer Rana Kapoor, to court, seeking the right to nominate directors on the bank board as the second largest shareholder in the bank. Kapur is the widow of the bank’s co-founder Ashok Kapur.

Rana Kapoor opposes Madhu Kapur’s right to nominate directors.

In a press release, Yes Bank said the court did not grant an injunction against the AGM as sought by Madhu Kapur.

“The appointments to the board at the AGM can all be taken up for voting. The matter has been listed next on 17 June 2015. In a spirit consistent with an intention to amicably resolve the matter, the bank has offered that M.R. Srinivasan and Diwan Arun Nanda, upon election, at the AGM will not assume office till 17 June 2015,” Yes Bank said, adding it is not in a position to state anything further because of the directions of the high court.

Yes Bank