Dish TV India shares surged Tuesday despite Yes Bank, a major shareholder has sought to remove the company’s directors, including the Managing Director, over corporate misgovernance allegations.
The bank, which owns 25.63% of the company lender, had sent Dish TV a special notice dated September 3rd, 2021, requesting the removal of directors in accordance with Section 169 of 2013’s Companies Act.
At 12 noon, Dish TV India shares on the BSE were at Rs 15.31. This was Rs 1.53 higher than its previous close and 11.10 percent more than its previous close.
The company filed a regulatory filing Monday stating that it is continuing to examine the special notices required for approvals, including steps taken to clear the Ministry of Information & Broadcasting of the candidature of new directors. This is a mandatory requirement.
It demanded the removal of Rashmi Aggarwal and Shankar Aggarwal, Ashok Matai Kurien, Bhagwan Das Narang, and Shankar Aggarwal as directors.
It has also asked for the removal of Jawahar L Goel, the company’s Managing Director. Yes Bank stated that Jawahar Lal Goel would be removed from the Board.
According to the bank, the current board of directors approved a rights-issue process in the midst of objections from the Bank time and again. This was done solely to dilute Bank’s shareholding and to protect the interests of Bank, which is the largest shareholder of the company at the date.
It stated that the board was not following good corporate governance standards.
Yes Bank stated that the board was acting on behalf of minority shareholders who hold only 6 percent of the shares.