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MUMBAI : Yes Bank Ltd’s year-long campaign to oust chairman Jawahar Goel from the board of Dish TV India Ltd paid off after the Subhash Chandra family member agreed to step down as a director at the company’s annual general meeting on 26 September.
This decision by Goel, the younger brother of Essel Group founder Subhash Chandra, made at least one proxy advisory firm argue that the end game has begun in the protracted battle.
On Wednesday, Dish TV told the exchanges that Goel, a non-retiring director, will not seek re-appointment as a director at the AGM later this month. In a separate notice, the satellite TV provider also said that the board had agreed to induct Sunil Kumar Gupta, Uday Kumar Varma and Haripriya Padmanabhan as directors after the information and broadcasting ministry approves their candidature.
Earlier this month, Dish TV had agreed to induct three independent directors—Girish Paranjpe, Arvindnachya Chandranachya and Madan Mohanlal Verma— on its board.
Padmanabhan, Paranjpe and Chandranachya were part of the seven directors Yes Bank had proposed in its letter dated 5 September 2021 when, alleging corporate misgovernance, it sought reconstitution of Dish TV’s board. All these recommendations to the board imply that Dish TV has agreed to induct three members recommended by the bank and three directors nominated by the company, a development reported by Mint on 23 August.
“Until now, Yes Bank and other investors were driving towards this point where the promoter steps down from the board. Now, the end game has begun,” said Amit Tandon, founder and managing director at proxy advisory firm Institutional Investor Advisory Services India (IiAS).
“Yes Bank is seeking to recover its money that was given to the Chandra family. The bank will not run Dish TV. So, the next step for Yes Bank is to get the board reconstituted, and then find a buyer who can take over the business. Hence, we believe today’s development is not the end game in itself, but rather the beginning of the end game,” said Tandon. Chandra had borrowed over ₹5,000 crore from Yes Bank, and his inability to service the loans made the lender invoke Dish TV shares that were pledged with the bank.
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