The National Company Law Tribunal (NCLT) on Thursday said Zee Entertainment 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.
NCLT directed Zee Entertainment Enterprises to hold board meet to consider Invesco’s plea for shareholders’ meet.
Communicate decisions appropriately to shareholders after board meet, NCLT told Zee.
“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.
Invesco Developing Markets Fund along with OFI Global China Fund had on Wednesday moved the NCLT against media major Zee Entertainment Enterprises Ltd (ZEEL) for not calling an EGM 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. On Thursday, Zee’s scrip on BSE closed trading 2% lower at Rs 302.95.
ZEEL, which had last week announced its merger with rival Sony Pictures Networks India to create the largest media firm in the country, termed the steps by its minority shareholders as “impulsive or premature”.
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.
Invesco had 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 USD 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.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.