Yes Bank to approach NCLT against Dish TV India
MUMBAI : Yes Bank Ltd is in the process of finalizing the paperwork to sue satellite television operator Dish TV India Ltd for refusing to hold a special meeting of shareholders, said three people familiar with the matter.
The private lender, Dish TV’s largest shareholder with a 25.63% stake, will ask the National Company Law Tribunal (NCLT) to order the company to either share shareholder details so that it can convene the meeting by itself, or ask it to set a date. for an extraordinary general assembly (EGM), the persons mentioned above declared on condition of anonymity.
âThe paperwork is underway,â said one of the three people named above. “The bank could file the petition on Thursday or, depending on when it is completed, it could be done no later than Friday.” The development would mark the start of a legal row over control of Dish TV. Yes Bank, annoyed by the current board of directors, demanded an EGM where shareholders could vote on its proposal to sack chief executive Jawahar Goel and four independent directors, and approve the induction of seven directors.
Yes Bank decided to move NCLT after Dish TV on October 14 reiterated its position that any dismissal or appointment of directors will require the prior approval of the Department of Information and Broadcasting, denying the bank’s request to convene an EGM. The company also said that accepting Yes Bank’s request to remove Goel and others would violate the 2011 takeover regulations and competition law.
Subsequently, Yes Bank, in a letter dated October 16, asked Dish TV if the company could share shareholder contact details, including addresses and emails, as the bank itself could call an EGM. , according to the leaders cited above.
Dish TV once again deemed Yes Bank’s request “arbitrary,” according to the Second Executive.
This convinced Yes Bank that seeking help from the courts was its only option to call a special meeting of shareholders.
âYes, the Bank’s action is arbitrary for the simple reason that the rules of the MIB are clear. We had taken the advice of the best Supreme Court lawyers and they both suggested the bank’s action was arbitrary, âsaid an executive from Dish TV, one of the three cited above.
Yes Bank’s legal battle with Dish TV will mark a resumption of the Zee Entertainment Enterprises-Invesco conflict in which Goel’s older brother, Subhash Chandra, is engaged in a legal battle with Zee’s largest shareholder, Invesco.
Some experts approved the approach taken by Yes Bank, which claims an additional 20% shareholder support, bringing total shareholder support to the bank’s recommendations for a board replenishment to 45%.
The de Goel family own 5.93% of Dish TV, of which about 40% of the shares are pledged to creditors, as of September 30.
“This is a logical step for Yes Bank as it becomes very impractical for the bank to convene an EGM without having the details of the shareholders,” said Amit Tandon, founder and CEO of IiAS, the proxy advisory firm . “The bank does it systematically, but the question is how the courts decide, and for that reason it could be a long battle, just like in the case of Zee-Invesco.”
An email sent to Yes Bank requesting comment went unanswered.
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