MUMBAI : Dish TV India Ltd, the satellite television provider owned by media baron Subhash Chandra’s Essel Group, said on Thursday that its board has dismissed requests from a specific shareholder group to convene an extraordinary general meeting (EGM) to reconstitute its board and remove two independent directors amid concerns over their independence.
On 15 May, a notice for the EGM was issued by 77 Dish TV shareholders, collectively representing 10.15% ownership. The shareholders proposed K. Badri Narayanan, Satis Kumar Yanmandra as well as Jeet Sen Gupta as independent directors nominees for the Dish TV board. Besides, they called for the removal of two independent directors, Shankar Aggarwal and Rashmi Aggarwal.
However, Dish TV said in an exchange filing that the board turned down the demand for EGM as the requisition notices submitted by the 77 shareholders were invalid.
“Upon careful examination, the board identified several flaws in the requisition notices,” said the Dish TV board.
“First, the four notices were not issued by the shareholders listed on Dish TV’s register of members. Additionally, seven notices were submitted in duplicate, with the originals missing. Furthermore, 11 notices were submitted by entities such as companies, trusts, and partnerships, without the necessary authorization from the respective board of directors or governing bodies allowing the individuals to call for an EGM,” it added.
So, the effective shareholding amounts to be less than the minimum threshold of 10%, which is required to become entitled to call for an EGM in a listed company, the company reasoned.
However, the group of 77 shareholders will be entitled to either send a fresh EGM requisition notice or may avail any legal recourse, it said.
Last September, private lender Yes Bank Ltd, which was Dish TV’s largest shareholder, had approached the Bombay High Court, seeking a direction for the satellite TV provider to hold a special shareholder meeting. In November 2021, Yes Bank had moved the Mumbai bench of the National Company Law Tribunal for directions to convene an EGM.
In December, Yes Bank had transferred its entire stake in Dish TV to JC Flowers Asset Reconstruction Co, along with the underlying loan that was disbursed to Essel group companies.
Dish TV shares closed marginally down at ₹14.15 apiece on the NSE on Thursday.
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Updated: 01 Jun 2023, 11:14 PM IST