Invesco Developing Markets Fund, a overseas portfolio investor in Zee Entertainment Enterprises Ltd (ZEEL), has moved the National Company Law Tribunal (NCLT) in an ongoing tussle with the media agency. The transfer comes after ZEEL failed to carry an EGM to hunt shareholders’ nod to take away sure administrators, together with Punit Goenka.
At current, Goenka — son of Essel Group founder and chairman Subhash Chandra — is the chief govt and managing director at ZEEL. Further, the fund had sought induction of its nominees on ZEEL’s board. The petition, which has been listed with the NCLT Mumbai bench, is slated to return up for listening to on Thursday.
A ZEEL spokesperson mentioned: “The board of the company remains committed to act within the framework of law and is focused towards enhancing the company’s growth and shareholder value. It is in the process of taking the required steps within the statutory period. The company does not wish to comment on any impulsive or premature steps taken by Invesco Developing Markets Funds and OFI Global China Fund”.
Invesco (previously Invesco Oppenheimer Developing Markets Fund) — which holds a 17.88 per cent stake in ZEEL along with its subsidiary OFI Global China Fund — earlier too requested ZEEL to convene an EGM. Apart from ouster of administrators, whom Invesco mentioned had been in breach of company governance norms, the fund had sought a reconstitution of the current board.
In its earlier letters dated September 11 and September 23, Invesco had requested ZEEL to stick to its fiduciary duties and statutory obligations and convene an EGM. A listed firm has to announce an EGM date inside three weeks of a request from an investor holding 10 per cent or extra stake. In case of ZEEL failing to announce an EGM date inside the stipulated time, Invesco can name for an EGM.
The transfer adopted a board approval by ZEEL for merger with rival Sony Pictures Networks India, an arm of Japan’s Sony Corp, to create India’s largest media and leisure firm.
