Dish TV slumps after shareholders reject 4 resolutions at AGM

Dish TV India fell 9.41% to Rs 15.41 after the company said that its shareholders rejected four of six resolutions at an annual general meeting on Monday (26 September 2022).

The firm said its AGM adjourned "sine die" without assigning a day for a further meeting.

Further, the number of directors on the company's board fell below minimum required strength. The board now consists of two members, Dish TV said in an exchange filing on Tuesday. The minimum required strength is of three directors as stipulated under the applicable provisions of the Companies Act, 2013.

The direct-to-home service provider said it will take "necessary steps" for complying with the requirement of the Companies Act, 2013. Further, it said it has sought the approval of the Union Ministry of Information & Broadcasting for approval of six directors and is awaiting a response.

The company's shareholders rejected resolutions pertaining to adoption of financial statements for fiscal years 2021 and 2022; appointment of new statutory auditor SN Dhawan & Co; and appointment of Rakesh Mohan as non-executive independent director.

This comes amid an ongoing dispute involving Yes Bank and Dish TV over the reconstitution of the firm's board and fundraising plans.

As on June 2022, Yes Bank held 24.78% stake in Dish TV by virtue of invoking pledged shares, while the promoter group owned only 4.04% stake in the company.

Dish TV India (DTIL), a part of the Essel group of companies, is India's first direct-to-home (DTH) company to launch its service in 2003. The company's net profit tumbled 64.5% to Rs 17.85 crore and net sales dropped 16.7% to Rs 608.63 crore in Q1 FY23 over Q1 FY22.

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