Zee Entertainment shares rise over 5% after shareholders reject Punit Goenka’s reappointment as director

Anupama Ghosh Updated - November 29, 2024 at 11:00 AM.

While the Goenka-related resolution was rejected, three other resolutions were passed successfully at Zee Entertainment’s annual general meeting

Punit Goenka | Photo Credit: PAUL NORONHA

The shares of Zee Entertainment Enterprises Ltd (ZEEL) were trading at ₹129.71 up by ₹6.60 or 5.36 per cent on the NSE today at 10.30 am.

Zee Entertainment Enterprises Ltd (ZEEL) shareholders have voted against the reappointment of Punit Goenka as director, according to a regulatory filing. The resolution failed to secure the required majority, with 49.54 per cent voting in favour and 50.4 per cent voting against.

The company’s annual general meeting (AGM) saw the critical resolution defeated, marking a significant setback for Goenka, who continues to serve as the company’s CEO. This comes after Goenka earlier resigned from the post of managing director and withdrew his consent for reappointment.

The ZEEL board had previously approved Goenka’s proposed five-year term from January 1, 2025, to December 31, 2029. However, several proxy firms had advised shareholders to vote against his reappointment.

While the Goenka-related resolution was rejected, three other resolutions were passed successfully. These included adopting the financial statement for fiscal year 2024, declaring a dividend, and ratifying remuneration to cost auditors.

The Companies Act 2013 requires ordinary resolutions to pass with a simple majority of 50 per cent plus one vote. In this case, Goenka’s reappointment resolution fell short of the required threshold, effectively ending his proposed directorship.

The development signals potential leadership changes at the media and entertainment company, with implications for its future governance and strategic direction.

Published on November 29, 2024 05:29

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