Companies

Dish TV rejects Yes Bank’s call for EGM

Ayushi Kar Mumbai | Updated on October 13, 2021

Cites existing laws for its inability

The Dish TV board decided on Wednesday to turn down Yes Bank’s request for an extraordinary general meeting.

Yes Bank called for the EGM for the reconstitution of Dish TV’s board of directors, including the removal of promoter Jawahar Goel, who is the brother of Subhash Chandra, Essel Group Chairman.

Chandra-backed Zee Entertainment is taking a similar approach to a request made by its largest shareholder, Invesco.

Invesco names Reliance as the potential partner for Zee

The Dish TV board said it considered the factual background, as also the advice and opinions from legal experts.

According to the board, the Banking Regulation Act, 1949, read with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, does not allow placing before shareholders the resolutions sought by Yes Bank. This is due to embargos, since Yes Bank is a banking entity and its shareholding in the company is consequent to invocation of pledges.

YES Bank may consider legal recourse in Dish TV issue

Moreover, the resolutions that Yes Bank wants put before sshareholders require prior approval of the Ministry of Information and Broadcasting in respect of national security clearance, as well as that of the company’s lenders. They also require certain prior steps from Yes Bank under SEBI provisions and prior approval under the Competition Act, 2002.

“Accordingly, in view of the above and considering (a) its fiduciary duties and (b) that the board shall be in violation of extant laws if it acts upon the notice, the board unanimously agreed that the EGM cannot be called, as sought by YBL vide the requisition notice dated September 21, 2021,” the board stated.

Published on October 13, 2021

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