Dish TV-YES Bank saga throws non-retiring director puzzle into sharp relief

Goel's ouster from Dish TV board will require another resolution

The tussle between Dish TV’s erstwhile promoters and YES Bank has brought into sharp focus the conundrum of ‘non-retiring’ directors at India Inc.

The Companies Act, 2013, allows public companies to appoint directors not liable to retire. The concept, say legal experts, is to allow large institutional shareholders, such as Life Insurance Corporation of India, to appoint nominee directors. However, it can complicate matters in cases where individuals belonging to erstwhile promoter groups refuse to cease their position even when they lose the reins of the company, observe experts.

Earlier this month, shareholders of Dish TV voted against a resolution