Minority investors oppose Dish TV's selection of independent directors

 Minority investors oppose Dish TV's selection of independent directors

Minority investors oppose Dish TV's selection of independent directors

The most recent outburst is a component of the continuing conflict between minority shareholders and the promoter family around purported shortcomings in corporate governance.

The ongoing conflict between promoters and public shareholders, spearheaded by special circumstances investor Jesse Flowers, is reflected in the most recent outburst.

When approximately 71% of Dish TV India Ltd's shareholders rejected the appointment of four autonomous directors at the company's extraordinary general meeting (EGM) on December 22 due to concerns about corporate governance, the standoff between the company's promoters as well as minority shareholders intensified last week.

According to exchange documents, Shankar Aggarwal, Virendra Tagra, Aanchal David, and Rajesh Sawhney were not appointed by minority shareholders. Rather, the nomination of Sanjay Khanna and Ravi Bhushan Puri as new directors was authorized by shareholders.

This event was initially reported on December 27 by the Mint newspaper.

The recent escalation is a part of the ongoing conflict between the business's founders and public shareholders, which is being spearheaded by special circumstances investor JC Flowers. Flowers has pointed out many instances of corporate governance failures in the company, including the loan of approximately Rs 203 crore to Dish TV. included the choice to write down the investment made in its over-the-top streaming program Watcho in June of last year.

Minority shareholders have so far rejected a number of recommendations from the existing family-led management of Zee Group, including the approval of financial statements as well as the reappointment of Subhash Chandra's younger brother Jawahar Goyal as its managing director.

According to experts, minority owners now have the burden of steering the firm in the proper path, even if a change in management was essential.

According to Sriram Subramanian, the founder and managing director of financial advice company InGovern Research Services, "this was long overdue at DishTV, but it is not clear whether JC Flowers has introduced in a new board that will inspire confidence among shareholders," he told Moneycontrol. "

Dish TV promoters, who now own roughly 4% of the business, have attempted to prevent JC Flowers from exercising his right to vote, from claiming ownership of shares, and from being involved in the administration and operations of the firm. Chandra received shares in Dish TV and a few real estate holdings in return for a loan of more than Rs 4,000 crore from Yes Bank in 2016. A part of the mortgage was transferred to JC Flowers' Asset Reconstruction Company, involving Yes Bank also has a 9.99 percent ownership, when the loan was not repaid.