A promoter entity of Dish TV India has moved a division bench of Bombay High Court challenging an order that rejected its plea to restrain Yes Bank from voting at its extraordinary general meeting (EGM).
On Friday, a single judge bench of Bombay High Court had declined to provide an interim relief sought by World Crest, a promoter entity, to stop Yes Bank from voting at Dish TV’s EGM coming up on June 24.
When contacted, a Dish TV spokesperson confirmed the development. The matter was already at the Bombay High Court, in which single bench had passed an order, against which now an appeal has been preferred before the division bench of the high court, the spokesperson said.
The case is expected to come up for hearing this week.
The single bench judge had rejected an ad-interim petition seeking to restrain Catalyst Trusteeship (a security trustee for shares pledged to Yes Bank) and Yes Bank from participating and voting at the EGM.
According to the EGM notice issued last month, Dish TV had sought shareholders’ approval for re-appointment of Jawahar Lal Goel as its managing director, re-appointment of Anil Kumar Dua as wholetime director and Rajagopal Chakravarthi Venkateish as a non-executive independent director. The e-voting for the resolutions, which commenced on Monday, will end on Thursday.
Yes Bank, which is the largest shareholder in Dish TV with a 25.63% stake, is embroiled in a legal tangle with the direct-to-home service provider. In September 2021, Yes Bank had sought removal of Dish TV’s five directors, including Goel, citing governance issues.
In its report dated June 13 this year, proxy advisory firm Stakeholders Empowerment Services had asked shareholders to vote against re-appointing Goel, citing concentration of power due to his chairman and managing director position and that of Venkateish as he being a past employee. It said there were “no major governance” concern against Dua’s re-appointment.
SES, which cited a recent Supreme Court judgement, said lenders like Yes Bank and others (together holding over 40% of equity in the company) are not owners of shares and cannot exercise voting rights.
Dish TV is a part of Essel Group and is run by Goel, Zee group patriarch Subhash Chandra’s brother. The promoters hold a 5.93% stake in the firm.