Largest shareholder of Yes Bank, Direct-to-Home (DTHThe company had approached the NCLT seeking a direction to the Dish TV board to convene an Extraordinary General Meeting (EGM) of shareholders to remove the managing director and chief executive. Jawahar Goel and four other directors.
A division bench of members Suchitra Kanuparthi and Anuradha Bhatia gave two weeks time to senior advocate JP Sen, appearing for Yes Bank, to file a reply on Dish TV’s reply and adjourned the matter till December 22.
However, senior advocate Navroj Servai, appearing for Dish TV, argued that the lender’s demand was invalid.
He referred to a recent order of the Bombay High Court in a similar case, where the court had granted an injunction in favor of Zee Entertainment Enterprises (Zee). invesco,
As the largest shareholder of ZEE, Invesco had sent a request notice for board restructuring of the company and approached the NCLT.
The Bombay High Court order has been challenged by an offshore investor before a division bench, and the matter is currently pending.
In May last year, Yes Bank took control of 24.19% stake of the promoters pledged shares in Dish TV.
Incidentally, while probing a complaint filed by Subhash Chandra, founder and chairman of Essel Group and brother of Goyal, Uttar Pradesh’s Gautam Buddh Nagar police station has issued notices and seized 44.5 crore shares of Dish TV, Which is currently owned by Yes Bank. ,
The police have restrained the company and the lender from exercising any right on these shares till further orders or till the investigation is completed.
ET reported on September 24 that the dispute between Goyal and Yes Bank over corporate governance and fund-raising plans was escalating and reaching the courts.
The bank wants to dissolve the entire board and remove the promoter family, as it believes that the board is working closely with minority shareholders (promoters) who should not be represented on the board.
Dish TV, which has been trying to raise funds for some time, had decided to go ahead with a rights issue of Rs 1,000 crore to be able to acquire new customers and invest on marketing and promotions.