The ongoing battle between Zee group promoter Punit Goenka and Invesco has further intensified with the Board of Zee Entertainment Enterprises Ltd rejecting a demand from the American investor to hold an Extraordinary General meeting.
“The Board, comprising of experienced professionals deliberated and discussed various legal and statutory implications of the requisition notice. The Board sought the opinions of independent counsel, legal experts including senior retired Supreme Court judges and evaluated the matter in a fair and transparent manner. In its meeting held on October 1, 2021, the Board has arrived at a conclusion that the requisition (by Invesco) is invalid and illegal; and has accordingly conveyed its inability to convene the Extraordinary General Meeting to Invesco Developing Markets Funds and OFI Global China Fund, LLC,” said a press statement from Zee.
“The Board has arrived at this decision by referring to various non-compliances under multiple laws, including the Securities and Exchange Board of India Guidelines, Ministry of Information and Broadcasting Guidelines and key clauses under the Companies Act and Competition Act, and after taking into account the interests of all the shareholders and stakeholders of the company. The company cannot comment on any future actions since the matter is sub-judice,” it added.
Also read:
The National Company Law Tribunal (NCLT) on Thursday directed Zee to positively consider the requisition made by Invesco to conduct an extraordinary general meeting (EGM) to vote on the removal of CEO and MD Punit Goenka. Invesco had petitioned to NCLT on Wednesday to compel Zee to hold the EGM. Counsel for the Invesco argued that they were justified in petitioning to the NCLT, stating that no indication had been made by Zee acknowledging Invesco’s notices.
On September 11, Invesco which is the largest minority shareholder of Zee with 18 per cent of shares requisitioned the company to call for an EGM to vote on the removal of Punit Goenka. This was reiterated in the September 23 notice made right after the September 22 merger announcement between Sony and Zee. Invesco disputed the terms laid out for the merger, which enable Goenka to continue on as the CEO for five additional years after the merger.