Dish TV shareholders demand board recast over governance issues

Shareholders of Dish TV are concerned about mismanagement and have sent a notice calling for a special general meeting (EGM).

Two independent directors are to be removed from the board, as the notice raises concerns over corporate governance issues.

In a statement, spokesperson Rahul Hingmire expressed shareholders' loss of trust in Dish TV's management, stating that the company's mismanagement is causing significant losses.

According to Hingmire, the shareholders have given their first notice, and the company will hold its first board meeting soon.

Upon receiving the notice, the shareholders hope to hear back within 45 days. It would be considered a violation of the Companies Act if the management fails to respond within this timeframe, which is already a grievance of minority shareholders. If this happens, shareholders can call an EGM.

In the notice, 74 shareholders propose the nomination of K Badri Narayanan, Satish Kumar Yanmandra, and Jeet Sen Gupta as independent directors. In addition, it seeks the removal of two independent directors, Shankar Aggarwal and Rashmi Aggarwal.

There is a tussle going on between Dish TV's largest shareholder, Yes Bank Ltd (YBL), and the promoter family led by its former chairman, Jawahar Lal Goel, regarding board representation. Continuing feuds and the inability to pass annual statements have prompted Jawahar Lal Goel to leave his position as promoter-backed chairman.

Dish TV has informed the stock exchanges that it is reviewing the communication from minority shareholders and will take appropriate actions according to applicable laws.