Dish TV jumps over 11% as Yes Bank demands to oust entire board

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Shares of Dish TV advanced as much as 11.64% or Rs 1.60 to Rs 15.35 per share on Tuesday after the company responded to key stakeholder’ demand to oust the entire board. Yes Bank which holds a 25.63% stake in Dish TV India, has written to the company seeking the removal of its directors and managing director, the DTH service provider said in a regulatory filing on September 6.

The private lender on September 03 in a special notice to Dish TV through an email, demanded the removal of directors under Section 169 of the Companies Act, 2013 for Removal of Directors.

“The Company is further examining the above said Special Notices for such approvals as may be required including the steps to be taken to get the candidature of proposed new Directors cleared from necessary Authority i.e. Ministry of Information & Broadcasting, as prior approval from the Authority is a mandatory requirement,” Dish TV said in a regulatory filing.

The notice sought removal of Dr Rashmi Aggarwal, Shankar Aggarwal, Ashok Mathai Kurien and Bhagwan Das Narang as directors, along with Jawahar Lal Goel as managing director of the company.

The bank further said that consequent to Goel’s removal as the MD, he shall also “cease to be the chairperson of the company”.

The bank in its notice said the current board of directors of the company had approved a rights issue process despite the bank’s objections solely to dilute its shareholding and to prejudice the interests of the bank, which is the single largest shareholder of the company. The bank further said the company’s board is not acting in line with good corporate governance standards. It further said the board is perhaps acting at the behest of certain minority shareholders holding merely 6% of the shares in the company.

In response to Yes Bank’s allegation Dish TV said the board of directors had appointed a sub-committee (comprising all independent directors) to consider various options for fundraising. After much deliberation and on the basis of the recommendation of the sub-committee, the board of directors decided to raise capital via a rights issue.

That apart the DTH provider referred to Regulation 17 (c) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) “The board of directors of the top 1000 listed entities (with effect from April 1, 2019} and the top 2000 listed entities (with effect from April 1, 2020) shall comprise of not less than six directors.”