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Dish TV shares surge despite shareholder YES Bank seek to oust board members

Dish TV shares surge despite shareholder YES Bank seek to oust board members
Stock Market2 min read
Shares of Dish TV India surged on Tuesday even after Yes Bank, a significant shareholder in the company, has sought the removal of the company's directors including the Managing Director over alleged corporate misgovernance.

The bank which holds 25.63 per cent stake in the company lender had sent a special notice dated September 3, 2021, to Dish TV, demanding the removal of directors under Section 169 of the Companies Act, 2013.

Around 12 noon, shares of Dish TV India on the BSE stood at Rs 15.31, higher by Rs 1.53 or 11.10 per cent from its previous close.

In a regulatory filing on Monday, the company said that it is further examining the 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 the Ministry of Information & Broadcasting, as its prior approval is a mandatory requirement.

It sought the removal of Rashmi Aggarwal, Shankar Aggarwal, Ashok Mathai Kurien and Bhagwan Das Narang as directors on the board.

Further, it has also sought the ousting of Jawahar Lal Goel as the Managing Director of the company. Post his removal from the board, "Jawahar Lal Goel shall cease to be the Chairperson of the Company," Yes Bank said.

The bank said that the present board of directors of the company has approved a rights issue process, pending objections raised with the Board by the Bank time and again, solely to dilute the shareholding of the Bank and to prejudice the interests of the bank which is the single largest shareholder of the company as of date.

"The board is not acting in line with good corporate governance standards and is not a fair representation of the incumbent significant shareholders of the company being various banks and financial institutions holding about 45 per cent shareholding in the company," it said.

The board is purportedly acting at the behest of certain minority shareholders holding merely 6 per cent of the shares in the company, Yes Bank said.


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