As YES Bank shareholders await a decision on nomination of Shagun Kapur Gogia on the board, her associates feel that she should be recognised “at least as a junior partner” in the bank.
“We want them (board of directors) to at least make up their mind to recognise her as a partner in the bank. She can be a junior partner,” said a source in the Gogia camp.
Shagun Kapur Gogia, daughter of Madhu Kapur and late Ashok Kapur, who co-founded YES Bank along with the current CEO and Managing Director Rana Kapoor, resigned from the board of her own company Tuscan Ventures to clear possible hurdles to her membership on the bank’s board.
“To avoid any further conflict of interest, Shagun Gogia has quit from the board of Tuscan Ventures a day before filing the nominations for directorship,” said another person clued in to the development. “Being on the board of Tuscan could tantamount to some violation of the Banking Regulation Act.
“Also, Tuscan Ventures had invested in a logistic company that had taken a loan from YES Bank. Hence, she has quit the board and transferred her entire shareholding to her family members,” said the person.
Earlier request
The request for her nomination was earlier rejected in 2009 on grounds that the nominee did not meet the “fit and proper” norm of the Reserve Bank of India.
Between the rejection of her appointment then and today, Gogia has seen a career progression which could only enhance the chances of her being selected on the board.
Before starting her own fund, Gogia worked in ICICI Venture and Rabo India.
A former independent director of YES Bank is reported to have said that the professional career of the daughter (of Ashok Kapur) has seen improvement and it could contribute to the well-being of the bank.
Matter ‘sub judice’
YES Bank declined to offer comments for this story. “As the matter is sub judice , we decline to comment on your queries,” said a spokesperson.
Madhu Kapur had moved the Bombay High Court on June 6 against the appointment of Diwan Arun Nanda, Ravish Chopra and M. R. Srinivasan on the bank’s board.
While the court declined to stay the appointments, it asked the board to consider the nomination of Gogia for directorship on June 27.
The High Court has directed the bank to share the results of the board meeting at the next court hearing which is scheduled for July 1.
Madhu Kapur and family own about 11.70 per cent stake, while Rana Kapoor owns 13.72 per cent in the bank.