Firing a fresh salvo at its largest investor, Zee Entertainment Enterprises (ZEE) on Saturday said it has filed a civil suit in the Bombay high court against Invesco.
“The Company has filed a suit before the Bombay High Court under the ordinary original civil jurisdiction (Civil Suit)… requesting the court to declare that the requisition notice sent to the company by Invesco Developing Markets Fund and OFI Global China Fund (shareholders of the company) is illegal and invalid,” the company announced to stock exchanges.
ZEE said that there are no expected financial implications on the company that may arise as a result of the suit, except legal costs.
Invesco Developing Markets Fund and OFI Global China Fund, both owned by Invesco, own a total of 17.88% stake in ZEE.
On September 11th, the investors sent a notice to the ZEE board, requisitioning to convene an extraordinary general meeting (EGM) to remove MD and CEO Punit Goenka and two other directors from the board of the company.
It also sought induction of six new independent directors on the board of the company.
On October 1st, the board of ZEE snubbed Invesco’s requisition calling it invalid due to multiple legal infirmities.
Earlier, Invesco had moved to the National Company Law Tribunal (NCLT), seeking an order under Section 98 of the Companies Act, to direct the ZEE board to convene an EGM. The matter is listed for October 4th.