Zee Entertainment Enterprises Ltd (ZEEL) on Saturday filed a petition within the Bombay High Court asking it to declare the requisition by a overseas investor to carry a rare common assembly (EGM) as “illegal and invalid”.
This follows the media agency’s rejection of a discover by its prime investor Invesco Developing Markets Funds to convene an EGM to evict sure administrators, citing “multiple legal infirmities”.
The transfer comes forward of the following listening to earlier than the National Company Law Tribunal (NCLT) on Monday. The firm has filed a go well with earlier than the Bombay High Court below the atypical unique civil jurisdiction, ZEEL stated in a inventory alternate discover.
It added that there could be no monetary implications on the corporate almost about the civil go well with, besides authorized prices.
Earlier, in its September 11 requisition letter, Invesco had sought convening an EGM to take away MD and CEO Punit Goenka, and non-executive administrators Ashok Kurien and Manish Chokhani, alleging breach of company governance norms. Kurien and Chokhani later resigned forward of the AGM.
In the identical letter, Invesco (previously Invesco Oppenheimer Developing Markets Fund) — which, along with its subsidiary OFI Global China Fund, holds a 17.88 per cent stake in ZEEL — had additionally sought inducting six of its nominees on the Indian agency’s board.
On Friday, ZEEL’s board rejected the EGM requisition, citing “multiple legal infirmities” and termed the discover as “invalid and illegal”. The board, in an alternate submitting, stated it had arrived at this resolution by referring to numerous non-compliances below Sebi and Ministry of Information and Broadcasting pointers and Companies Act, amongst others.
Expressing its capability to convene the EGM, the corporate additionally stated it was in the very best curiosity of the agency, together with all its shareholders and stakeholders.
ZEEL stated it wanted prior permission from the Ministry of Information and Broadcasting, and added the proposal by Invesco to nominate one-half of the board would additionally consequence within the overseas investor effecting a change in charge of the corporate with out making an open provide.
On its half, Invesco had moved NCLT’s Mumbai bench Thursday, and the attraction got here up for listening to on Friday. The tribunal had adjourned the case to Monday.
Civil go well with filed
The firm has filed a go well with earlier than the Bombay High Court below the atypical unique civil jurisdiction, Zee Entertainment Enterprises Ltd stated in a inventory alternate discover
On Friday, ZEEL’s board rejected the EGM requisition by Invesco Developing Markets Fund, citing “multiple legal infirmities” and termed the discover as “invalid and illegal”
