Interestingly, various issues raised by the I&B ministry relating
to Space TV and Sun 's DTH applications were not brought up when
pubcaster Doordarshan started its DTH service.
Technically speaking, some of the DTH guidelines clauses should
have brought DD Direct Plus too under a cloud.
Meanwhile, the ministry of company affairs does agree that the
clause relating to the affirmative rights of Star Group --- having
almost a veto power regarding board decisions of Space TV --- could
According to Indian laws, a shareholder needs to have at least
26 per cent holding in a joint venture to have veto rights on board
decisions. The affirmative rights clause in the Space TV shareholders'
agreement is similar to this clause wherein the minority shareholder
has the right to accept or refuse board
decision with 20 per cent stake only.
Space TV, envisaging putting up a Rs. 16 billion DTH project in
India, is a 80:20 joint venture between the Tatas and the Rupert
Murdoch-controlled Star Group.
Keep tuned in as we fish out more on this.
Prima facie, no problem in Space TV: I&B ministry
TV: I&B readies note for Reddy's approval