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Yes Bank files petition asking Dish TV to disclose AGM outcome

Yes bank also argued in its petition that Dish TV’s promoters had made several attempts earlier to debar the company’s top shareholder from voting at its 30 December annual meeting.Premium
Yes bank also argued in its petition that Dish TV’s promoters had made several attempts earlier to debar the company’s top shareholder from voting at its 30 December annual meeting.

  • Yes contends the HC in its earlier order did not put a stay on the disclosure of AGM results
  • On 30 Dec, Dish TV claimed that the high court had directed it to disclose results after the final hearing

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MUMBAI : The tussle between Dish TV India Ltd and its largest shareholder Yes Bank Ltd is likely to stretch further, with the private lender moving the Bombay high court for an order asking Dish TV to disclose the results of its annual general meeting (AGM) held on 30 December.

In its petition filed on Wednesday, Yes Bank said the high court in its earlier order did not put a stay on the disclosure of AGM results, while declining to give relief to the promoter entity of Dish TV, which had questioned the legal validity of Yes Bank’s shares in the satellite-TV provider.

On 30 December, Dish TV in a notice to stock exchanges claimed that the high court had directed it to disclose voting results after the final hearing. The court is set to hear the matter on 3 February.

“It is abundantly clear from the aforesaid order that the honourable court declined to grant the plaintiff (Dish TV promoter) any ad interim relief, including a stay on the effect/implementation of the decision taken at the AGM of defendant No:3 (Dish TV) held on 30 December," the lender said in its appeal. “For that, the outcome of an AGM of a listed entity cannot be kept secret and in abeyance from its shareholders and the stock exchanges in the absence of an order of a court or other competent authority," it added.

Yes Bank also said Dish TV’s promoters had made several attempts to debar its top shareholder from voting at its 30 December annual meeting.

On 23 December, the Bombay high court did not give any relief to World Crest Advisors, a promoter entity of Dish TV, which had questioned the share ownership of Yes Bank, which owns 25.63% in the satellite television provider. It had also urged the court to debar Yes Bank from voting at its 30 December annual meeting.

“For that, it is clear…defendant No:3’s (Dish TV) acts are at the behest of the promoters of the Essel Group, and are part of the Essel Group’s broader stratagem of denying the applicant (Yes Bank) its legitimate rights as the holder of shares in defendant No: 3 (Dish TV),’ Yes Bank said in its petition.

World Crest Advisors had pledged the shares with Yes Bank in lieu of the bank giving money to Subhash Chandra-controlled entities in 2016. The Essel Group founder is the elder brother of Jawahar Goel, chairman and managing director of Dish TV.

When the privately held firms of Chandra could not pay back the interest on the money borrowed from Yes Bank, the bank invoked the share pledged with it last year to emerge as the largest shareholder in the company. Dish TV promoters own 5.93% of the company.

Financial creditors, including Yes Bank, own about 45% of shares in Dish TV, and executives from three financial creditors and shareholders, claim that more than 55% of shareholders voted against the three resolutions, including adoption of financial accounts, the reappointment of Ashok Kurien as director and approving the remuneration to the auditor. Some shareholders, including the City of New York Group Trust, abstained from voting, according to a disclosure made by the foreign shareholder, and reviewed by Mint. If the resolution of approval of financial accounts gets rejected, then Dish TV cannot raise 1,000 crore via a rights issue, which was the genesis in the fight between the two entities.

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