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The shareholders of Dish TV voted against the reappointment of Jawahar Lal Goel and two other directors yesterday.
The proposals to reappoint Jawahar Lal Goel as MD, Anil Kumar Dua as WTD, and former CEO Rajagopal Chakravarthi Venkateish as non-executive independent director were rejected by the shareholders of the DTH company. However, Goel would stay as a non-executive director and Dua as CEO.
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This news is a massive win for Yes Bank because there is a conflict between the companies. Yes Bank is currently the largest shareholder of Dish TV, holding 25.63% in the company. The bank acquired these shares by invoking share pledges after the Essel Group company failed to clear its dues of Rs 5,270 crores.
Yes Bank had been alleging that the Board of Dish TV was acting on the behest of the promoters of Essel Group, especially Subhash Chandra Goenka, the older brother of Jawahar Lal Goel. Yes Bank wanted a change in management but the company was against that as it announced a Rs 1,000 crores rights issue which would dilute Yes Bank's holding.
A legal battle ensued as the bank approached the NCLT stating that the rights issue was a decision against shareholders' interest and that the management needed a rejig. Sometime later, Subhash Chandra Goenka filed a police complaint against the MD of Yes Bank alleging coercion which led to Yes Bank's holdings being frozen.
Subhash Chandra had made a statement in the meanwhile that he was ready to repurchase the shares held with Yes Bank at a fair price. However, Bombay HC came to the bank's rescue as it ruled against such freezing. This move effectively allowed the bank to take part in the EGM of Dish TV which ended up removing Jawahar Lal Goel as the company's MD.
Shares of Dish TV have been steadily declining ever since September 2021. Yesterday, the share surged 10.55% to close at Rs 12.05 per share, registering a loss of 34.7% since the beginning of 2022 to investors.
Article by Aman Agarwal.
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