CORPORATE

ZEEL says no to Invesco’s call for EGM, matter may escalate into a legal battle

The board of Zee Entertainment Enterprises (ZEEL) would not hold an extraordinary general meeting (EGM) as demanded by shareholder Invesco Developing Market Funds, the company said in a regulatory filing on Friday. 


The statement was issued a day after the National Company Law Tribunal (NCLT), while hearing a plea moved by Invesco, had said that the Zee board should consider the demand for an EGM as mandated by the law. 


In the regulatory filing, Zee said that the board had convened a meeting on October 1 to discuss the demand raised by the shareholders for the extraordinary meeting. 


“In the best interests of the company as a whole, including all its shareholders and stakeholders, we express our inability to convene the EGM,” it said. 


The company claimed that it had arrived at the conclusion after consulting legal experts, including former judges of Supreme Court. 


Zee pointed out that Invesco had called for the EGM to push for the ouster of directors Ashok Kurien and Manish Chokhani, apart from MD and CEO Punit Goenka. However, Mr Kurien and Mr Chokhani had already resigned from their posts, thereby, making the resolution moved by Invesco “infructuous”, it said. 


“The board deliberated and unanimously concluded that the Requisition Notice is not valid as it suffers from multiple legal infirmities,” the company said. 


The rejection of calling the EGM is most likely to intensify into a legal battle between ZEEL and Invesco and OFI Global, its largest shareholders with 17.88 per cent stake. The matter is already before the NCLT, which will hold its next hearing on October 4. 

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