Dish TV India fell 1.80% to Rs 19.05 after the board of satellite service provider rejected Yes Bank's demand to hold an extraordinary general meeting (EGM) to consider resolutions.
The board of Dish TV India on Wednesday (13 October 2021) expressed its inability to convene EGM as requisitioned by Yes Bank, citing various regulatory and procedural hurdles.According to the company, Yes Bank's shareholding in Dish TV was due to invocation of pledges, and this prevented placing the resolutions before its shareholders.
The board took the decision after considering the factual background, legal advice and opinions received from various legal experts.
Yes Bank which holds 25.63% in Dish TV India has sought an EGM for the appointment of new independent directors and the removal of MD and director Jawahar Lal Goel.
The bank is seeking appointment of new independent directors including Akash Suri, Sanjay Nambiar, Vijay Bhatt, Haripriya Padmanabhan, Girish Paranjpe, Narayan Vasudeo Prabhutendulkar and Arvind Nachaya Mapangada.
It has sought removal of five directors of Dish TV, citing governance issues. Apart from Jawahar Lal Goel, the lender had also sought removal of Rashmi Aggarwal, Bhagwan Das Narang, Shankar Aggarwal and Ashok Mathai Kurien.
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In its notice on 6 September 2021, Yes bank said the existing Dish TV board is purportedly acting at the behest of certain minority shareholders holding a mere 6% of shares in the company.
Dish TV on Wednesday said that for the resolutions proposed to be placed before the shareholders of the company, certain prior steps have to be undertaken by Yes Bank under the applicable provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and also prior approval to be obtained by YBL under the Competition Act, 2002.
Prior approval of the Ministry of Information and Broadcasting (MIB) in respect of national security clearance as well as that of the company's lenders is also required.
Dish TV India's consolidated net profit tanked 34.1% to Rs 49.14 crore on a 12.5% decline in net sales to Rs 730.97 crore in Q1 FY22 over Q1 FY21.
Dish TV India is an Indian direct broadcast satellite service provider in India owned and operated by the Zee Group.
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