Zee Entertainment Enterprise (ZEEL) on Saturday moved the Bombay High Court against its biggest shareholders, Invesco Developing Markets Fund and OFI Global China Fund, pleading that their demand to call an extraordinary general meeting (EGM) be declared illegal. 

The move comes a day after the company had rejected the demand for the EGM, which is being sought to overhaul the board and also seek the removal of ZEEL Managing Director Punit Goenka.

“This is to inform you that the Company has filed a suit before the Hon’ble High Court of Judicature at Bombay (Bombay High Court) under the ordinary original civil jurisdiction (Civil Suit), inter alia requesting the Bombay High Court to declare that the requisition notice sent to the Company by Invesco Developing  Markets Fund and OFI Global China Fund (shareholders of the Company) is illegal and invalid,” Zee said in an exchange filing today. 

Invesco and OFI Global China Fund, which together hold a 17.88 per cent stake in ZEEL, demanded the EGM in a letter on September 11. Apart from the ouster of Mr Goenka and two other directors, Invesco had sought the appointment of six new directors – Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta. 

On September 29, a week after Zee had announced the mega merger with Sony Pictures Networks India (SPNI), Invesco had moved the National Company Law Tribunal (NCLT), seeking an order for the EGM to be convened. 

The NCLT, which had listed the matter for a hearing on October 4, had asked the board of ZEEL to consider the requisition made by the investors.