The Bombay High Court on Thursday suggested that the two largest shareholders of YES Bank — Rana Kapoor, Managing Director and CEO of the bank, and Madhu Kapur — could bring down their respective stakes to below 10 per cent so that both sides forego the right to appoint directors.
The court, however, did not give any final order on the nearly two-year-old legal wrangle.
Reserving the final judgement till May 12, the Court proposed that if the shareholding is brought down below the threshold limit then the dispute will get resolved. While YES Bank and Madhu Kapur did not comment on whether they will accept the court’s suggestion, people close to the two sides said they are unlikely to.
A YES Bank executive said on the condition of anonymity that some facts from the Articles (of Association) may have been overlooked by the Judge.
“When we meet on May 12, we will do the clarification exercise,” the executive said. If both parties agree to the Court’s suggestion, it will be part of the judgment.
As of March 31, Rana Kapoor owned a 11.77 per cent stake whereas Madhu Kapur and family owned 10.29 per cent. Madhu Kapur, along with daughter Shagun Kapur Gogia, has been fighting for rights as the legal heir of Ashok Kapur, who co-founded the bank with Rana Kapoor.
Rana Kapoor’s wife and Madhu Kapur are sisters.
At day’s close, YES Bank shares ended weaker by ₹22.45 at ₹798.75 a share.