The National Company Law Tribunal (NCLT) on Thursday ordered that Zee Entertainment Enterprises Ltd should consider shareholders’ request to hold an Extraordinary General Meeting (EGM). A news channel reported that NCLT will hear the matter again on October 4.
The tribunal, during the hearing today, also said that it is not a discretionary power of the board to call or not call for EGM.
It directed Zee to hold board meet to consider Invesco’s plea for shareholders’ meet, adding, it should also communicate decisions appropriately to shareholders after board meet.
“The Board of the Company is scheduled to meet as per the statutory time allotted, in relation to NCLT matter,” said Zee spokesperson post NCLT hearing.
Dhruve Liladhar and Co. is representing Invesco, while Trilegal is representing Zee, Mint reported earlier.
The decision comes a day after Invesco Developing Markets Fund along with OFI Global China Fund moved the NCLT against ZEEL for not calling an extraordinary general meeting of the company.
Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) along with OFI Global China Fund LLC — which together hold 17.88 per cent in ZEEL — had earlier called for an extraordinary general meeting of shareholders seeking the removal of Managing Director Punit Goenka.
Shares of Zee traded 2.21% lower on BSE to close at ₹302.95 apiece amid the commencement of NCLT hearing.
Earlier this month, the two investment firms had called an extraordinary general meeting of shareholders seeking to remove Punit Goenka along with two other independent directors — Manish Chokhani and Ashok Kurien, both of whom resigned later.
The investment firm has also sought the appointment of six of its own nominees on the board of the company — Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta.
Goenka is the son of ZEE founder and Essel Group chairman Subhash Chandra. Essel Group currently owns 4 per cent stake in the company.
On September 22, ZEEL and Sony Pictures Networks India (SPNI) had announced their merger, which will create the country”s largest media company.
The merged entity, in which SPNI’s parent company Sony Pictures Entertainment would infuse $1.575 billion, will be a publicly listed company in India.
Moreover, the move will also provide a lifeline to ZEEL Managing Director and Chief Executive Officer Punit Goenka.
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