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The shares of Dish TV were up 9 per cent on Tuesday morning even as YES Bank, which holds a 25 per cent stake has proposed to oust the company’s entire board.
At 10:27 am, Dish TV was trading at ₹15.02, up ₹1.24 or 9.00 per cent. It had opened at ₹15.20, as against the previous close of ₹13.78. It hit an intraday high of ₹15.80 and a low of ₹14.49.
On the NSE, it was trading at ₹15.05, up ₹1.30 or 9.45 per cent.
Yes Bank has issued a notice asking the company to put its proposal to vote at Dish TV’s annual general meeting on September 27.
It has sought the removal of the company's entire board, including Jawahar Lal Goel, the promoter and Managing Director.
The bank said the existing board is purportedly acting at the behest of certain minority shareholders holding a mere 6 per cent of shares in the company.
It further said that the company’s present board of directors has approved a rights issue process despite objections raised by the bank “to dilute the shareholding of the bank and to prejudice the interests of inter alia, the bank, which is the single largest shareholder of the company as of date.”
It had asked the board to desist from approving the capital-raising exercise by way of a rights issue.
“The 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 per cent shareholding in the company,” it added.
The bank has also charged the board for ignoring the bank’s requests to reconstitute the board. Sanjay Nambiar, Senior Group President and General Counsel at YES Bank; Akash Suri, Country Head, Stressed Asset Management at YES Bank; Viiav Bhatt, former KPMG executive; Haripriya Padmanabhan a litigation counsel; and Girish Paranjape, former Co-CEO of Wipro’s IT Business are among the names proposed by Yes Bank for reconstituting the board.
Dish TV said the proposed new directors could be appointed only after obtaining approvals from the Ministry of Information and Broadcasting.
Yes Bank was trading at ₹10.92 on the BSE, down ₹0.07 or 0.64 per cent. On the NSE, it was trading at ₹10.95, down ₹0.05 or 0.45 per cent.
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