This comes after Bombay High Court on Tuesday granted relief to Zee Entertainment by granting injunction against Invesco’s call for extraordinary general meeting (EGM).
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The National Company Law Tribunal (NCLT) on October 27 said that the bench has adjourned the Zee-Invesco case till November 16 for directions.
Counsel appearing for OFI Global China Fund, Janak Dwarkadas said that they will be probably going for an appeal against Bombay High Court order.
“Since I have been injuncted from proceeding any further with the notice of requisition, your lordships may keep it sometime after the vacation for directions because probably we will be going for an appeal and if there is any reversal we can inform the court,” said Dwarkadas.
Bombay High Court on Tuesday granted relief to Zee Entertainment by granting injunction against Invesco’s call for extraordinary general meeting (EGM).
The court observed that directing Zee to call an EGM would be potentially non-compliant. It further said that there is a fundamental flaw in Invesco’s construct.
Invesco and OFI Global China Fund which together hold 17.88 percent stake in the media company had requested Zee to convene an EGM on September 11 seeking removal of MD and CEO, Punit Goenka and appointment of six new independent directors.
Zee had moved the court against Invesco’s call for an EGM and to declare it illegal and invalid.
In terms of appointment of independent directors, the Bombay HC in its October 26 order said, In the scheme of the Companies Act, shareholders do not get to choose individual independent directors. They may only demand that there be independent directors.”
While the Bombay HC restrained Invesco from taking any action in furtherance of their requisition notice (to call an EGM), said Nirav Shah, a partner at law firm DSK Legal, the court has not declared the call for an EGM illegal or invalid.
Shoubhik Dasgupta, partner at Pioneer Legal, a law firm pointed out that Invesco will most likely go to a higher bench, a division bench. “And after that if required they can go to the Supreme Court,” said Dasgupta.