Dish TV India’s shareholders rejected the appointment of four independent directors of the satellite service provider at its extraordinary general meeting (EGM) held on Friday. Following the rejection, the company’s board strength has been reduced to two directors.
The shareholders did not approve the appointment of Sunil Kumar Gupta, Madan Mohanlal Verma, Gaurav Gupta and Lalit Behari Singhal as independent directors with the requisite majority. About 74% of investors voted against the appointment of the directors, announced in December last year, the company said in a stock exchange update.
The direct-to-home operator’s board now has now has only two independent directors — Rashmi Aggarwal and Shankar Aggarwal — as against six mandated by markets regulator.
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“The board shall take necessary steps for complying with the requirement of the Companies Act, 2013, and Sebi listing regulations in respect of the number of the directors,” Dish TV added.
Lalit Behari Singhal is a former bureaucrat, Sunil Kumar Gupta former secretary, Telecom Regulatory Authority of India, while Madan Verma had served as an inspector of Customs and Central Excise in the Centre and in various positions at LIC
Earlier in September, Dish TV’s shareholders had rejected four resolutions that came up for voting at the annual general meeting, including adoption of the company’s financial statements for FY21 and FY22, and appointment of an independent director. Later in December, the shareholders again rejected a proposal for adoption of the company’s financial statements for the fiscals.
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Private lender Yes Bank, which is the largest shareholder in Dish TV with a 25.63% stake, has been embroiled in a legal tangle with the company. The lender had sought the removal of Dish TV’s five directors — including Dish TV chairman Jawahar Lal Goel and Bhagwan Das Narang — accusing them of corporate governance issues. Later in September, Goel resigned as director.
Dish TV is a part of Essel Group, with the promoters holding a 5.93% stake in the firm, and Goel is Zee group patriarch Subhash Chandra’s brother.