Moneycontrol PRO

Dish TV rejects Yes Bank's call for EGM citing regulatory issues

Dish TV has noted that for the resolution to be put before the shareholders, prior approval of the Ministry of Information and Broadcasting in respect of national security clearance as well as that of the company's lenders is required.

October 13, 2021 / 04:52 PM IST
Yes Bank has alleged that Dish TV's board is purportedly acting at the behest of certain minority shareholders holding “merely around 6 percent of the shares” in the company.

Yes Bank has alleged that Dish TV's board is purportedly acting at the behest of certain minority shareholders holding “merely around 6 percent of the shares” in the company.

 
 
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Satellite service provider Dish TV, which is operated by the Zee Group, denied its largest shareholder Yes Bank's call for an extraordinary general meeting.

"Owing to YBL (Yes Bank Limited) being a Banking Company and YBL's shareholding in the Company being a consequence of invocation of pledges, there are certain embargos under the provisions of the Banking Regulation Act, 1949 read with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, because of which the said resolutions cannot be placed before the shareholders," the company said in an exchange filing on October 13.

Dish TV 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.

Considering the above points, Dish TV said that "the Board shall be in violation of extant laws if it acts upon the Notice, the Board unanimously agreed that the EGM cannot be called, as sought by YBL vide the requisition Notice dated September 21, 2021 received by the Company on September 23, 2021 vide e-mail. The Board also instructed the management to send a detailed response to YBL."

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Yes Bank which holds 25.63 percent in the company had sought an EGM on September 23 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, Arvind Nachaya Mapangada.
Maryam Farooqui
first published: Oct 13, 2021 04:39 pm

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