This is what Yes Bank is doing to protect its vote at Dish TV AGM

Yes Bank on Tuesday filed a caveat in the National Company Law Tribunal (NCLT) against Essel Group founder Subhash Chandra, his younger brother Jawahar Goyal and their family members. According to an executive privy to the development, this allows the bank to present its arguments before the tribunal, if it presides over any potential complaints brought before it.

“Over the past two weeks, several retail shareholders (of Dish TV) have told us that people close to the company have approached them to sign a petition alleging that the bank is acting in a malicious manner. And the bank is disrupting business on Dish TV,” said the executive on condition of anonymity.

“Under the Companies Act, 100 shareholders can come together and file a complaint in the court. To avoid replaying the earlier episode of Gautam Buddh Nagar Police Station, when our right to vote was in jeopardy and we had to approach the Supreme Court to stay that decision, we filed a caveat So that a court, to preside over any possible complaint from Dish TV, will hear our arguments before passing the order,” the executive said.

Tuesday’s developments are another dramatic step in the 100-day long battle between Dish TV and its largest shareholder Yes Bank.

For investors and analysts, it has been a roller-coaster ride, from Dish TV postponing its AGM thrice to accusing Yes Bank of corporate misconduct, forcing the bank to seek Supreme Court intervention and freed the shares owned by him after a local. The Uttar Pradesh police station has sealed the shares of the bank-owned Dish TV.

Mint has reviewed the draft petition against Yes Bank which was sent to certain retail shareholders and referred by the above mentioned executive.

“I am contemplating to file a petition u/s 241-242 of the Companies Act, 2013, to bring to the notice of the Hon’ble Tribunal/Honorable Court the harassment and mismanagement by YES BANK at the behest of some unwanted parties so as to take over the company and protect the company from any adverse move (including change of board of directors) which is prejudicial to the interest of minority shareholders,” reads the draft petition shared by a retail shareholder in Dish TV.

Emails sent to Yes Bank did not elicit any response.

A Dish TV spokesperson said, “The company is not aware of any petition. The company has not hired any agency to conduct any promotional activity for the purpose mentioned in your email. The company does not engage in such activities. is not included.”

Dish TV’s AGM on December 30 is important for two reasons. Firstly, a listed company has time till December 30 to hold its AGM with an extension of three months. This means that Dish TV can no longer push back the meeting with shareholders as per law.

Second, Dish TV shareholders will vote on three proposals, the adoption of financial statements for the year ended March 2021, the reappointment of Ashok Kurian as director, and the approval of costs to its auditors.

Rejecting the resolution to adopt the financial statements would mean that Dish TV cannot proceed with its plan. 1,000 crore through rights issue, origin of the fight between Dish TV and Yes Bank.

Earlier this year, Yes Bank had repeatedly objected to Dish TV’s plans to raise money through a rights issue, arguing that unless it subscribes to the new issue of shares, its stake in the company would have decreased, while promoter ownership would have increased.

Yes Bank holds a 25.63% stake, while the promoters, led by Chairman Jawahar Goel, hold a 5.93% stake in Dish TV.

Goyal’s elder brother, Subhash Chandra, has agreed to relinquish control in Zee Entertainment Enterprises Ltd., following a revolt by the largest shareholder, American asset management firm, Invesco, merging his firm with Sony Pictures Networks India Ltd. Gave.