India's Dish TV falls 10% as shareholders reject results, auditor appointment
By Sethuraman N R
BENGALURU (Reuters) -Shares of Dish TV fell as much as 10% on Tuesday, a day after shareholders of the broadcast satellite service provider rejected audited statements for the last two fiscals, appointments of a new auditor and an independent director.
The shareholders rejected appointments of Rakesh Mohan as an independent director as well as S.N. Dhawan & Co LLP, Chartered Accountants as the auditor of the company.
Dish TV also adjourned its annual general meeting without a date, the company said in a filing late on Monday, adding that the strength of the board had come down to two directors, below the minimum required strength of three.
Yes Bank, which holds an about 25% stake in Dish TV, has been pushing for a board reconstitution, citing corporate governance issues.
"As a largest shareholder, it looks like Yes Bank has voted against some of the proposals," said Shriram Subramanian, managing director of Bengaluru-based InGovern Research Services, a corporate governance advisory firm.
"Now, the ball is in Yes Bank's court. It should take it up to the next stage of appointing new directors and provide direction to the company."
Yes Bank did not immediately respond to Reuters' request for comment.
Late last month, Dish TV said Chairman Jawahar Lal Goel would not seek a reappointment and independent director Bhagwan Das Narang would vacate office after his term expired, both of which Yes Bank had been pushing for.
Shares of Dish TV are down 7.9% so far this year as of last close, and had recovered nearly 42% in September after Goel's decision to quit the board.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Rashmi Aich and Uttaresh.V)
