Zee Entertainment Enterprises Ltd (ZEEL) on Saturday filed a petition earlier than the Bombay High Court asking it to declare the requisition by a overseas investor to maintain a rare common meeting (EGM) as “illegal and invalid”.
This follows the media agency’s rejection of a discover by its high investor Invesco Developing Markets Funds to convene an EGM to evict sure administrators, citing “multiple legal infirmities”. The transfer comes forward of the subsequent listening to earlier than the National Company Law Tribunal (NCLT) on Monday.
The company has filed a swimsuit earlier than the Bombay High Court beneath the odd authentic civil jurisdiction, ZEEL mentioned in a stock change discover.
ZEEL additionally added that there can be no monetary implications on the company with regards to the civil swimsuit, besides authorized prices.
Earlier in its September 11 requisition letter, Invesco had sought convening an EGM to take away chief govt officer and managing director Punit Goenka and non-executive administrators Ashok Kurien and Manish Chokhani, alleging breach of company governance norms. Later, Kurien and Manish Chokhani resigned forward of ZEEL’s 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% 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 a stock change submitting, mentioned it had arrived at this choice by referring to varied non-compliances beneath Sebi and ministry of knowledge and broadcasting (MIB) tips and Companies Act, amongst others. The board has additionally taken under consideration the curiosity of all shareholders and stakeholders of the company.
Expressing its potential to convene the EGM, the company additionally mentioned it was in one of the best curiosity of the agency, together with all its shareholders and stakeholders.
ZEEL mentioned it wanted prior permission from the ministry of knowledge and broadcasting, and added the proposal by Invesco to appoint one-half of the board would additionally outcome within the overseas investor effecting a change answerable for the company with out making an open supply.
On its half, Invesco had moved NCLT’s Mumbai bench on Thursday, and the attraction got here up for listening to on Friday. The tribunal had adjourned the case to Monday.