In a late night submitting on Monday, ZEEL mentioned Invesco and OFI Global China Fund, collectively holding a 17.88% stake within the company, have sought a unprecedented normal meeting for Goenka’s ouster.
At current, Goenka – the son of Essel Group founder and chairman Subhash Chandra – is the CEO and managing director at ZEEL. Further, the company additionally mentioned its two non-executive, non-independent administrators — Manish Chokhani and Ashok Kurien — have resigned with rapid impact. The company mentioned the administrators resigned citing “changed life circumstances” and “pre-occupation”.
Last week, proxy advisory agency Institutional Investor Advisory Services India (IiAS) had raised company governance points at ZEEL and requested shareholders to vote in opposition to resolutions. IiAS had requested shareholders to not help resolutions to reappoint Chokhani and Kurien and reject adoption of monetary statements.
Both Kurien and Chokhani have been members of the audit committee in FY20 and are accountable for the losses of associated get together transactions and governance considerations, IiAS had alleged. The company had denied all allegations.
At the company’s AGM on Tuesday, Zee Enterprises chairman R Gopalan didn’t point out the 2 administrators’ resignations. Invesco and OFI Global China Fund had additionally sought appointment of six of its personal nominees on the board of Zee Entertainment.
The voting outcomes of numerous resolutions of the annual accounts might be out after two days.
“Corporate governance was the biggest roadblock for Zee where the recent development of EGM for removal of directors and its promoters is changing sentiments for the group. Zee has a big brand and network along with strong operations where the only concern was management,” Santosh Meena, head of analysis at Swastika Investmart, mentioned.
“The stock is trading at attractive valuations and it is one of the strongest and FIIs favourite stocks in the media space. If there will be any change in promoter then we may see a big re-rating in the counter as we have seen earlier in CG Power,” he added.
Prior to the AGM, the company’s shares had surged in early commerce and closed up 39.99% at `261.50 on the BSE.