The board of Dish TV Ltd (DTL) rejected on Wednesday, YES Bank’s demand to hold an extraordinary general meeting (EGM) to consider judgments, citing nonsupervisory limitations and absence of previous blessings from the government and lenders.

Private lender YES Bank, which holds25.93 per cent stake stake in DTL, had sought the junking of DTL directors Jawahar Lal Goel and others, and appointment of the bank’s own appointees.
The bank had sought their junking for alleged hasty and arbitrary opinions to do with the rights issue despite expostulations raised by the lender.

DTL in form with BSE said the board considered the factual background, the legal advice and the opinions entered from colorful legal experts.
YES Bank is a banking company and its stake in DTL arises from the incantation of pledges shares. Hence, there are embargos under regulations and laws (Banking Regulation Act, 1949 and Sebi’s Substantial Acquisition of Shares and Appropriations regulations) which prevents it from placing judgments before the shareholders.

YES Bank also needs to get previous blessing from the government (Ministry of Information and Broadcasting) in respect of public security concurrence, and company’s Lenders before placing similar proffers before shareholders.
The board has considered its fiduciary duties and it shall be in violation of extant laws if it acts upon the Notice. The board unanimously agreed that the EGM can not be called, as sought by the lender, the company said.

On September 21, YES Bank had asked DTL to call an EGM to inaugurate its seven appointees on the board and remove Goel and four directors. The bank had advanced Rs crore to Essel group promoters, but as the Essel group promoters defaulted on loans, it invoked the shares pledged by the promoters last May.
Goel is the youngish family of Subhash Chandra, whose flagship establishment ZEE Entertainment Enterprises blazoned a junction with its rival, Sony to produce a$ 2 billion entertainment mammoth.