The Bombay High Court on Thursday directed Zee Entertainment Enterprises Ltd (ZEEL) to convene an EGM (extraordinary general meeting) as requisitioned by its shareholders Invesco Developing Markets Fund (Invesco) and OFI Global China Funds.
A single-judge Bench of Justice G S Patel has ruled that EGM will be chaired by a retired judge or a neutral person and its resolution should be kept in abeyance till the HC decides on the legality and validity of EGM requisition. It further added that the EGM resolution will be subject to the approval of the Ministry of Information and Broadcasting.
The bench remarked that denying the right to call an EGM would set a “ferocious” precedent. ZEEL said it would inform the court on Friday (22nd October) about the EGM date.
Earlier on September 11, Invesco had asked the ZEEL board to call an EGM of shareholders to vote on the removal of the current Chief Executive Officer and Managing Director Punit Goenka and proposed the appointment of its six nominees.
Invesco then moved the National Company Law Tribunal (NCLT) after ZEEL did not respond to the request. The ZEEL board rejected NCLT’s request to hold the board meeting. Later on October 2nd ZEEL moved the High Court asking the court to declare that the shareholders meeting requisition notice sent by Invesco on September 11 is illegal and invalid.
