Yes Bank seeks removal of 5 Dish TV directors after its board proceeds with Rs 1,000 cr rights issue

Yes Bank Limited, which is a shareholder of Dish TV India Limited and holds 47,19,13,990 equity shares representing a 25.63% stake, has asked for the removal of five directors of Dish TV after the company board decided to raise Rs 1,000 cr via a rights issue.

These directors are Rashmi Aggarwal, Bhagwan Das Narang, Shankar Aggarwal, Jawahar Lal Goel, and Ashok Mathai Kurien.

"Pursuant to the provisions of Section 169 read with Section 115 and other applicable provisions, if any, of the Companies Act, 2013, and the Rules framed thereunder, we, the  Bank, a shareholder of the company, hereby issue this special notice to the company to move the following resolutions at the 33'd Annual General Meeting of the Company to be held on September 27, 2021," a Yes Bank special notice reads.

The bank has sought the removal of these directors citing the present Dish TV board's decision to approve a rights issue process, despite objections raised with it time and again,  "solely to dilute the shareholding of the bank", which is its single largest shareholder.

Yes Bank said the Dish TV 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% shareholding in it.

It also said the "board is purportedly acting at the behest of certain minority shareholders holding merely 6 per cent of the shares in the company".

It said this is reflected from the fact that even though the bank asked the board to desist from approving or conducting the proposed capital raising exercise by way of a rights issue, without consulting the significant shareholders, it went ahead to make a press announcement on May 28, 2021, that it'll proceed with Rs 1,000 crore rights issue.

Yes Bank notice says the board completely side-lined its multiple requests to reconstitute the board by appointment of the nominee directors, and that it acted in complete haste and took arbitrary decisions to proceed with the rights issue process.

Meanwhile, Dish TV has said it is examining the special notices from Yes Bank "for such approvals as may be required including the steps to be taken to get the candidature of proposed new directors cleared from necessary authority as prior approval from it is a mandatory requirement.

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