Dish TV India’s board on Wednesday expressed its lack of ability to convene a unprecedented common assembly (AGM) as requisitioned by Sure Financial institution, citing varied regulatory and procedural hurdles. In line with the corporate, Sure Financial institution’s shareholding in Dish TV was as a consequence of invocation of pledges, and this prevented putting the resolutions earlier than its shareholders.
The direct-to-home service supplier, during which Sure Financial institution holds a 25.63% stake, supported this by stating that there have been sure embargoes beneath the Banking Regulation Act and Sebi takeover code, it stated in a inventory change discover.
Dish TV is part of Essel Group and is run by Jawahar Lal Goel, the Zee group’s founder Subhash Chandra’s brother.
To put the resolutions earlier than the shareholders, Sure Financial institution must observe procedures and get approvals from the market regulator. The lender additionally requires prior approvals from the ministry of knowledge and broadcasting in respect of nationwide safety clearance.
Additional, Dish TV would additionally require approvals from its different lenders to position the requisitions earlier than the shareholders.
This determination was taken after contemplating the factual background, authorized recommendation and opinions obtained from varied authorized consultants, it added.
Whereas additional particulars weren’t offered, Dish TV’s board additionally stated it has instructed the corporate’s administration to ship an in depth response to Sure Financial institution. Earlier this 12 months, Dish TV had introduced plans to boost `1,000 crore by way of a rights concern, which was later accredited by the board in June.
Nonetheless on September 3, Sure Financial institution had objected to the difficulty and sought removing of 5 administrators — Jawahar Lal Goel, Rashmi Aggarwal, Bhagwan Das Narang, Shankar Aggarwal and Ashok Mathai Kurien — citing governance points.
Dish TV, which had earlier convened an AGM for September 27, cancelled it a day earlier than, after the federal government offered an extension of two months to all firms for holding the shareholders’ assembly. This was in wake of the Covid-19 outbreak.
On its half, Sure Financial institution had accused Dish TV of “partaking in dilatory ways” and as a substitute of putting the resolutions earlier than the shareholders, it was in search of an extension of AGM date based mostly on “unfounded causes”.
Forward of its annual common assembly, proxy advisory corporations — Stakeholders Empowerment Providers (SES) and Institutional Investor Advisory Providers India (IiAS) — had alleged “critical governance” lapses at Dish TV, and requested shareholders to vote towards the resolutions.