YesBank wants mktregulatorto probe developments at Dish TV
The bank wants Sebi to investigate the decisions made by Dish TV India
BENGALURU: Yes Bank Ltd wants the market regulator Securities and Exchange Board of India (Sebi) to investigate some of the recent decisions made by Dish TV India Ltd, including the board’s decision to defer the annual general meeting and the subsequent disclosures made by the satellite-TV provider.
At the heart of the latest tussle between Yes Bank and Dish TV is the Noida-based company’s decision to defer its annual general meeting (AGM) and question whether it was influenced by the outcome of the electronic voting process, according to two executives familiar with the development.
“We plan to meet the Sebi representatives sometime this week and make a detailed submission as we believe the current board of Dish TV is making a complete mockery of corporate governance,” said an executive at Yes Bank. The executive did not want to be named as these decisions have not been made public.
“Among the things, is the issue of the electronic voting process. Dish TV got the approval of the registrar of companies (ROC) to extend its AGM on September 23 but it told the exchanges only a few hours before the electronic voting lines were closed. We voted against all three resolutions and we understand most other creditors (who are shareholders) also voted against the resolutions,” said the executive, referring to events that made Dish TV defer its AGM earlier scheduled for September 27.
On September 19, Dish TV sought the approval of the ROC to allow it time until November 30 to hold the shareholder meeting. Dish TV reasoned that it needed time to examine the demands of Yes Bank, which owns 25.63% of the company’s shares.
Yes Bank in a letter dated September 3 had asked Dish TV to reconstitute its board by removing five of the current six members and inducting seven directors.
On September 23, the regulator granted a two-month extension to Dish TV to convene its AGM. However, Dish TV informed the exchanges only at 7:11 pm on September 25 that its shareholder meeting was deferred indefinitely. Shareholders could use the electronic voting process to vote on the three resolutions, including on the reappointment of Ashok Kurien, non-independent and non-executive director, from 9:00 am on September 23 until 5:00 pm on September 26.
This delay, Yes Bank alleges, was because Dish TV by then had got an indication that its three resolutions had got defeated as shareholders had already used the electronic voting facility to cast their votes.
Dish TV has not disclosed the outcome of the e-voting on the three resolutions, including on Kurien’s reappointment.
Financial institutions, including Yes Bank, have a total shareholding of 45% in Dish TV.
None of the 10 largest shareholders in Dish TV responded to Mint’s question on if they used the electronic voting facility. Mint also cannot independently ascertain the claims made by Yes Bank.
A detailed questionnaire sent to Dish TV seeking comments went unanswered.