New Delhi: Dish TV has sought additional time to convene the next Annual General Meeting (AGM), which was initially scheduled to be held on 27 September. The company has cited some regulatory approvals, that it needs to obtain before going ahead with the meeting.
The DTH company has informed the BSE, that its Board of Directors has approved the application for postponing the AGM scheduled on 27 September. The new date of the meeting has not been disclosed yet, however, as per rules, the meeting could happen any time before 30 December.
Earlier this month, one of its prime shareholders YES Bank, which holds 25.63 per cent stake in Dish TV India Ltd had sent a special notice to the company, seeking the removal of the current directors and managing director. The proposal was to be tabled at the upcoming annual 33rd general meeting.
In its communique to the stock exchange on Sunday, the company has stated that the proposed changes in the Board are subject to applicable regulatory permissions and also other approvals which the Company requires to obtain. While it has already sent the applications to the Lenders for seeking their consent for the said change in the Board of Directors of the Company under applicable covenants, the approval is still awaited.
“Accordingly, in order to ensure compliance of all applicable laws and guidelines in respect of the Notices sent by YBL and also to ensure that the Company does not default on any of the regulatory and lender covenants, the Board of Directors of the Company have approved making requisite applications as per provisions of the Companies Act for seeking extension of time under applicable regulatory provisions for convening the AGM of the Company, so that the Company has sufficient time to evaluate, analyse and to ensure compliance of all applicable regulatory, and other approvals as required by the law and avoid any non-compliance to contractual obligations,” it wrote.
In its special notice to Dish TV, Yes Bank had sought the removal of Rashmi Aggarwal, Shankar Aggarwal, Bhagwan Das Narang, and Ashok Mathai Kurien as directors, along with Jawahar Lal Goel as managing director of the company under Section 169 of the Companies Act, 2013. This would also remove Goel from the post of chairperson of the Company.
The Bank had alleged that the current Dish TV Board was “not acting in line with good corporate governance standards and is not a fair representation of the incumbent significant shareholders of the Company” which hold about 45 per cent shareholding in the Company.
In its notice, Yes Bank had also proposed to reconstitute the board with - Yes Bank senior group president and general counsel Sanjay Nambiar, Yes Bank, country head, stressed asset management, Akash Suri, former KPMG executive Viiav Bhatt, litigation counsel Haripriya Padmanabhan, Wipro’s IT business former Co-CEO Girish Paranjape, independent management consultant Narayan Vasudeo Prabhutendulkar and Arvind Nachaya.
Dish TV had responded to the notice, stating that the proposed new directors could be appointed only after obtaining approvals from the ministry of information and broadcasting. and other requisite approvals for appointment of new directors, within the statutory timelines.