Zee Entertainment Enterprises Ltd (ZEEL) on Saturday filed a petition ahead of the Bombay High Court asking it to declare the requisition by a foreign investor to hold an extraordinary common meeting (EGM) as “illegal and invalid”.
This follows the media firm’s rejection of a notice by its major investor Invesco Developing Markets Funds to convene an EGM to evict particular directors, citing “multiple legal infirmities”. The move comes ahead of the next hearing ahead of the National Company Law Tribunal (NCLT) on Monday.
The corporation has filed a suit ahead of the Bombay High Court below the ordinary original civil jurisdiction, ZEEL stated in a stock exchange notice.
ZEEL also added that there would be no monetary implications on the corporation with regards to the civil suit, except legal fees.
Earlier in its September 11 requisition letter, Invesco had sought convening an EGM to get rid of chief executive officer and managing director Punit Goenka and non-executive directors Ashok Kurien and Manish Chokhani, alleging breach of corporate governance norms. Later, Kurien and Manish Chokhani resigned ahead of ZEEL’s AGM.
In the identical letter, Invesco (formerly Invesco Oppenheimer Developing Markets Fund) — which, collectively with its subsidiary OFI Global China Fund, holds a 17.88% stake in ZEEL — had also sought inducting six of its nominees on the Indian firm’s board.
On Friday, ZEEL’s board rejected the EGM requisition citing “multiple legal infirmities” and termed the notice as “invalid and illegal”.
The board, in a stock exchange filing, stated it had arrived at this selection by referring to numerous non-compliances below Sebi and ministry of data and broadcasting (MIB) recommendations and Companies Act, amongst other folks. The board has also taken into account the interest of all shareholders and stakeholders of the corporation.
Expressing its capability to convene the EGM, the corporation also stated it was in the most effective interest of the firm, such as all its shareholders and stakeholders.
ZEEL stated it necessary prior permission from the ministry of data and broadcasting, and added the proposal by Invesco to appoint one-half of the board would also outcome in the foreign investor effecting a transform in manage of the corporation without the need of generating an open present.
On its aspect, Invesco had moved NCLT’s Mumbai bench on Thursday, and the appeal came up for hearing on Friday. The tribunal had adjourned the case to Monday.