The Dish TV board has denied the Dish minority shareholder’s request for an Extraordinary General Meeting. In an exchange filing on Wednesday, the board found, that the EGM cannot be called due to numerical and procedural invalidity.
The Dish TV board threw out 52 original requisition notices, stating that they could not be considered valid for the purpose of requisition, citing they were not the original copies, rather, photocopies.
Speaking with businessline, Dish spokesperson Rajeev K Dalmia said that they have only received valid requisition notices from 6.5 per cent of Dish shareholders. This is below the 10 per cent threshold required to call an EGM.
Dalmia added that they have reached out to the minority shareholders via their law firm Vis Legis Law Practice in Mumbai, to rectify the situation of invalid individuals requisition notices by the minority shareholders.
The law practice responded saying that the rejection of requisition notice by Dish was arbitrary and illegal. Rahul Hingmire, Managing Partner of Vis Legis Law Practice, Advocates said. “The rejection by the Company of the requisition notice is arbitrary, illegal, and against the rules and provisions of the Companies Act. The decision of the Board has deprived the minority public shareholders of their legal rights to call for an EGM. The minority shareholders of the Company are evaluating their options available under the law and will take necessary steps. The minority shareholders are hopeful that the market regulator will take note of such arbitrary and illegal conduct of the Company and will take necessary action to protect the interest of investors who has suffered from enormous wealth destruction.”
The minority shareholders have been calling for an EGM to remove two independent directors from the board, Shankar Aggarwal and Rashmi Aggarwal due to their associations with the Essel Group.
“The existing independent directors have a long-term association with Dish TV and Essel group which cast doubt over their independence,” the shareholders had written in the second notice for EGM.