Commenting on the family battle raging at YES Bank, the bank's lawyer says its governance systems are intact, and continues to hold out hope that there is scope for mediation to be able to resolve the tussle.
In a court case in which the Bombay High Court yesterday released a ruling, Madhu Kapur, widow of the bank's late co-founder Ashok Kapur, has accused the other co-founder Rana Kapoor (husband of her sister Bindu) of systematically sidelining her family from the bank's operations.
But in an interview with CNBC-TV18's Menaka Doshi, Cyril Shroff, Partner, Cyril Amarchand Mangaldas, shed light on the judgement yesterday in which the court said both Rana Kapoor and Madhu Kapur had right to jointly appoint nominees on the board and that such right had bequeathed to the late co-founder's wife.
Shroff said that the court's decision to declare the appointment of seven directors in the past as invalid was granted with a five-week stay and that "not much had changed for the bank" and that the board was fully functional.
He also addressed the question of the nomination of YES Bank's previous chairman MR Srinivasan to the board -- which was retrospectively held as invalid by the court -- and said that Srinivasan was recently re-nominated as the shareholder's nominee and hence does not fall within the ambit of the judgement.
But more importantly, Shroff said the court had observed that the bank's Articles of Association may need to be reworked. He added that this may help in mediating the tussle.
"Clarity is good and if the articles are the source of amendment, they should be fixed," he said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
