YES Bank asks Dish TV to call EGM to reconstitute the company’s board

Yes Bank, the largest shareholder of Dish TV India Ltd, has asked the satellite television service provider to hold an extraordinary general meeting (EGM) of shareholders and act on its recommendations to reconstitute the company’s board.

This follows Dish TV postponing the annual general meeting that was scheduled on September 27. No new dates have been communicated yet.

According to Yes Bank, the extension is based on “unfounded reasons” and Dish TV is engaging in “dilatory tactics” in placing the resolutions to remove its Managing Director Jawahar Goel along with four other directors.

The Essel group Direct-to-Home service provider had week sought an extension citing time required for any change in the CEO or the board of directors of the company, as it needs the approval of the Ministry of Information and Broadcasting.

Dish TV on Thursday said it has received a communication from Yes Bank to call for an EGM of the shareholders of the company.

“The company has received a letter titled ‘Requisition for calling an Extraordinary General Meeting of the shareholders of Dish TV India from Yes Bank’ dated September 21, 2021. The said notice was received by the company on e-mail post our above referred intimation,” said Dish TV in a regulatory updates.

Yes Bank hold 47.19 crore equity shares of the company, representing 25.63 per cent of the company.

According to Yes Bank, instead of placing the resolutions before the shareholders of the company at the AGM, which was to be held on September 27, 2021, Dish TV is now seeking an extension of the date of holding AGM based on “unfounded reasons”.

“In light of the company engaging in dilatory tactics in placing the resolutions before the shareholders, the bank is constrained to issue the present notice under Section 100 of the Companies Act, 2013 for holding an extraordinary general meeting of the Company,” it said.

According to Yes Bank, Dish TV had notified it that the change in directorship requires, inter alia, prior approval of the Ministry of Broadcasting and hence the resolutions for removal and appointment of directors cannot be placed before the shareholders at the AGM.

“The bank accordingly issued revised notices to the company on September 9, 2021, wherein the effectiveness of the change in directorship of the company was made subject to receipt of the MIB approval,” it said.

It had in its letter dated September 18, 2021 submitted details of the proposed directors to enable the company to apply to the MIB and seek their approval, Yes Bank said.

In the EGM notice, Yes Bank has sought to remove Rasllmi Aggarwal, Bhagwan Das Narang, Shankar Agganval and Ashok Mathai Kurien from the board of Dish TV besides Jawahar Goel.

Yes Bank, which is opposing Rs 1,000 crore right issues by the Subhash Chandra led Essel group firm, has also sent name of seven people – two Non-Executive Directors and five Independent Directors – to be nominated on the board of the company.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor