MUMBAI: Enterprises’ board on Friday rejected the requisition by the company’s largest shareholder Invesco Developing Markets and OFI China Fund LLC to hold an extraordinary general meeting.
The rejection by the board of the company comes after the National Company Law Tribunal had on Thursday directed the broadcasting company to hold the EGM as requested by Invesco.
“After considering the unanimous advice received about the legal validity of the Requisition Notice, the Board deliberated, and unanimously concluded that the Requisition Notice is not valid, as it suffers from multiples legal infirmities,” the board of the company said in an exchange filing.
Current Managing Director and member of the promoter family Punit Goenka recused himself from the board meeting as he was an interested party by virtue of Invesco seeking vote on a proposal to remove him as director from the board at the requested EGM.
Zee Entertainment’s board said it had sought legal advice on the matter from the company’s counsel, former Supreme Court judges and senior corporate lawyers.
The company’s rejection of the EGM sought by Invesco is likely to elongate the boardroom battle between one of India’s biggest media mogul and its largest shareholder.
Earlier this month, Invesco, which holds over 17 per cent stake in the company, had sent a notice to the board to call for an EGM to vote on nine proposals made by it that broadly looked at revamping the company’s board.
However, instead of calling for the EGM the company has instead signed a non-binding term sheet with Sony Pictures India for a merger that will keep Punit Goenka as the managing director and CEO of the merged entity and allow his family to raise stake to up to 20 per cent.
The promoter family currently owns around 4 per cent stake in the company, which is expected to remain the same post-merger with Sony India.