YES Bank seeks removal of Jawahar Goel, 4 others from Dish TV board

YES Bank has given a special notice under Section 169 of the Companies Act, 2013, which seeks the removal of Rashmi Aggarwal, Bhagwan Das Narang, Shankar Aggarwal, and Ashok Mathai Kurien, besides MD

Private lender YES Bank, which holds a 25.63 per cent stake in Dish TV India, has sought the removal of five directors in the company, including Managing Director (MD) Jawahar Lal Goel. YES Bank has given a special notice under Section 169 of the Companies Act, 2013, which seeks the removal of Rashmi Aggarwal, Bhagwan Das Narang, Shankar Aggarwal, and Ashok Mathai Kurien, besides the MD.

The bank said the current board of directors of the company had approved a rights issue process despite the bank's objections solely to dilute its shareholding and to prejudice the interests of the bank, which is the single largest shareholder of the company. The bank further said the company’s board is not acting in line with good corporate governance standards. It further said the board is perhaps acting at the behest of certain minority shareholders holding merely 6 per cent of the shares in the company.   

Dish TV in its response to YES Bank's allegation said the board of directors had appointed a sub-committee (comprising all independent directors) to consider various options for fundraising. After much deliberation and on the basis of the recommendation of the sub-committee, the board of directors decided to raise capital via a rights issue.