Dish TV, the satellite service provider which the Zee Group operates, denied its largest shareholder Yes Bank's call for an extraordinary general meeting (EGM).
"Owing to YBL (Yes Bank Limited) being a banking company and YBL's shareholding in the company being a consequence of invocation of pledges, there are certain embargos under the provisions of the Banking Regulation Act, 1949 read with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, because of which the said resolutions cannot be placed before the shareholders," the company said on October 13.
The bank is seeking the appointment of new independent directors, including Akash Suri, Sanjay Nambiar, Vijay Bhatt, Haripriya Padmanabhan, Girish Paranjpe, Narayan Vasudeo Prabhutendulkar, and Arvind Nachaya Mapangada. Yes Bank planned to approach a company court if the satellite TV provider's board fails to convene a special meeting of shareholders by October 13.
Dish TV said that certain prior steps have to be undertaken by Yes Bank under India's Securities and Exchange Board (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Prior approval has to be obtained by YBL under the Competition Act, 2002, for the resolutions proposed before the company's shareholders.
It also said that a prior approval by the Ministry of Information and Broadcasting (MIB) and by the company's lenders is required. Dish TV said that "the board shall violate extant laws if it acts upon the Notice, the board unanimously agreed that the EGM cannot be called, as sought by YBL vide the requisition notice dated September 21, 2021 received by the Company on September 23, 2021 vide e-mail. The board also instructed the management to send a detailed response to YBL."
Yes Bank, which holds 25.63 per cent in the company, had sought an EGM on September 23 to appoint new independent directors and remove MD and Director, Jawahar Lal Goel.
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