Dish TV has sought an extension for holding its annual general meeting (AGM), as the company requires regulatory and other approvals for a proposed change in the board. The move comes after Yes Bank, which holds a 25.63% stake in the firm, had sought removal of its managing directors and four board members.
Post the notices from Yes Bank, the company has also made necessary applications to the lenders seeking their consent for the changes in board and approvals are awaited, it said in a regulatory filing on Sunday. The company needs sufficient time to evaluate, analyse and ensure compliance of all applicable regulatory and other approvals as required by the law and avoid any non-compliance to contractual obligations, it added.
The company had earlier convened the AGM for September 27. However, it did not specify a new date for the AGM.
In its September 3 notice, Yes Bank had sought removal of five directors, including Managing Director Jawahar Lal Goel, citing governance issues. The other directors whose removal was sought are Rashmi Aggarwal, Bhagwan Das Narang, Shankar Aggarwal and Ashok Mathai Kurien.
The lender also alleged that the company’s board had approved a rights issue, despite objections raised by the bank, which is the single largest shareholder of the company. Dish TV is a part of Essel Group and is run by Jawahar Goel, Zee group patriarch Subhash Chandra’s brother. The promoters hold a 5.93% stake in the direct-to-home services provider.
According to proxy advisory firm Institutional Investor Advisory Services India (IiAS), which had earlier raised corporate governance issues at Dish TV, Dish TV will have to convene an EGM in 45 days. This is to seek shareholder’s approval after large investors sought removal of certain directors. In case of the company not convening an EGM, then the investors have three months to organise the EGM for which the company will have to bear expenses, IiAS said in a note earlier.