Peters dissolved the board last week after it terminated the secondment of the acting chief executive Collins Letsoalo. It's understood Letsoalo increased his salary by 350% without approval.
Former board chairman Popo Molefe has now launched a court application to have Peters’ decision declared unlawful.
Peters has defended the move.
“It is my contention that my pronouncement to dissolve the former board of Prasa was a necessary step to bring closure to the matter, but also to ensure that I restore good corporate governance, bring stability and ensure Prasa continues to provide good services to the public.”