In a major relief to Zee Entertainment Enterprises (ZEEL) and setback to shareholders Invesco Developing Markets Fund (Invesco) and OFI Global China Funds, the Bombay High Court on Tuesday stayed the investor’s requisition of convening an extraordinary general meeting (EGM) seeking the removal of ZEEL MD and CEO Punit Goenka.
Invesco which holds a majority stake in ZEEL earlier on September 11 had asked the ZEEL board to call an EGM of shareholders to vote on the removal of Punit Goenka and proposed the appointment of its six nominees.
On October 21, the Bombay High Court had directed ZEEL to convene an EGM as requisitioned by 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.
ZEEL had moved to Bombay HC court against Invesco’s call for an EGM and to declare it illegal and invalid. The HC had reserved its order on October 21 after ZEEL had informed the court that it was not willing to hold an EGM of shareholders as requested by Invesco.
Speaking on the HC order, the ZEEL spokesperson said that the decision taken by the Hon’ble Bombay High Court is a huge win for all the stakeholders of the Company.