Dish TV slumps as shareholders reject 4 out of 6 resolutions at AGM

Shares of Dish TV India Ltd. fell the most in three months after the number of directors on its board fell below minimum required strength, following its shareholders’ rejection of four of the six resolutions at the annual general meeting.

The board now consists of two members, Dish TV said in an exchange filing on Tuesday. The AGM had been adjourned ‘sine die’, the filing stated. 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 shall 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 shareholders, which include the single largest stake owner Yes Bank Ltd., also didn’t pass resolutions pertaining to the adoption of FY21 and FY22 results, the appointment of new auditors SN Dhawan & Co., and the reappointment of Dish TV’s non-executive independent director Rakesh Mohan.

The developments come on the back of the ongoing dispute between Yes Bank and the Goel family, promoters of Dish TV, over the reconstitution of the firm’s board.

Further, since SN Dhawan & Co. Chartered Accountants weren’t appointed as new auditors, Walker Chandiok & Co LLP will continue as statutory auditors of the company.

On Tuesday, Dish TV shares fell 10%, the steepest intraday decline in over three months since June 20. The stock is on course to extend losses for the third day. Over the last three days, the stock has lost 24%. Bloomberg