NCLT says Zee should consider shareholders' request to hold EGM

NCLT directs Zee Entertainment Enterprises to hold board meet to consider Invesco's plea for shareholders' meet

The National Company Law Tribunal (NCLT) on Thursday said Zee Entertainment should consider shareholders' request to hold an extraordinary general meeting (EGM). A news channel reported that NCLT will hear the matter again on October 4.

NCLT directed Zee Entertainment Enterprises to hold board meet to consider Invesco's plea for shareholders' meet. 

Communicate decisions appropriately to shareholders after board meet, NCLT told Zee.

"The Board of the Company is scheduled to meet as per the statutory time allotted, in relation to NCLT matter," said Zee spokesperson post NCLT hearing.

Invesco Developing Markets Fund along with OFI Global China Fund had on Wednesday moved the NCLT against media major Zee Entertainment Enterprises Ltd (ZEEL) for not calling an EGM of the company.

Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) along with OFI Global China Fund LLC -- which together hold 17.88 per cent in ZEEL -- had earlier called for an extraordinary general meeting of shareholders seeking the removal of Managing Director Punit Goenka. On Thursday, Zee's scrip on BSE closed trading 2% lower at Rs 302.95.

ZEEL, which had last week announced its merger with rival Sony Pictures Networks India to create the largest media firm in the country, termed the steps by its minority shareholders as "impulsive or premature".

Earlier this month, the two investment firms had called an extraordinary general meeting of shareholders seeking to remove Punit Goenka along with two other independent directors -- Manish Chokhani and Ashok Kurien, both of whom resigned later.

Invesco had also sought the appointment of six of its own nominees on the board of the company -- Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta.
 

Goenka is the son of ZEE founder and Essel Group chairman Subhash Chandra. Essel Group currently owns 4 per cent stake in the company.

On September 22, ZEEL and Sony Pictures Networks India (SPNI) had announced their merger, which will create the country''s largest media company.

The merged entity, in which SPNI's parent company Sony Pictures Entertainment would infuse USD 1.575 billion, will be a publicly listed company in India.

Moreover, the move will also provide a lifeline to ZEEL Managing Director and Chief Executive Officer Punit Goenka.