A change in leadership at Dish TV India had been sought by YES Bank due to concerns regarding corporate governance in the firm.
Dish TV India shares zoomed over 9 percent on Monday after the Indian satellite television service firm's Managing Director Jawahar Lal Goel announced he was stepping down from his post.
The decision came after Dish TV India shareholders rejected a special resolution for Goel's reappointment.
In the meeting held on Friday, a total of 128.54 crore votes were polled with 78.94 percent of shareholders voting against Goel's re-appointment as managing director for three more years.
YES Bank, which owns around 24 percent of Dish TV India, requested the meeting. A change in leadership had been sought by YES Bank due to concerns regarding corporate governance in the firm.
Consequently, Goel stepped down as the managing director of the direct-to-home (DTH) company.
At Monday's close, the stock settled at Rs 12.46 around 3.5 percent. It hit the day's high of Rs 13.45.
The other two proposals that were made in the meeting were the re-appointment of Anil Kumar Dua as a whole-time director and Rajagopal Chakravarthi as an independent director of the company also failed to receive the required majority.
It led to a legal dispute between Dish TV India's promoter entities and the bank, with the former moving to the Mumbai High Court to prevent YES Bank from voting in the extraordinary general meeting for Goel's reappointment.
Incorporated in 1988, DISH TV India operates in the media and entertainment sector as a smallcap company (market capitalisation of Rs 2,218.71 crore).
First Published: IST