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Thursday, December 02, 2021

Bombay Court has not declared meeting call illegal or invalid: HC restrains Invesco from requisitioning ZEEL EGM

The high court had last week reserved its order on the issue last week after ZEEL had told the court that it was not willing to hold an EGM of shareholders as requested by its Invesco.

By: ENS Economic Bureau | Mumbai |
Updated: October 27, 2021 1:01:19 am
Zee Entertainment Enterprises Ltd (ZEEL) (File Photo)

In a relief to Zee Entertainment Enterprises (ZEEL), the Bombay High Court on Tuesday granted relief to ZEEL, restraining Invesco from going ahead with the requisition of an extraordinary general meeting (EGM) seeking the removal of ZEEL MD and CEO Punit Goenka.

Invesco Developing Market Fund, which holds a 17.88 per cent stake in the company, had requested ZEEL to convene an EGM on September 11 seeking the removal of Goenka and the appointment of six new independent directors.

ZEEL had moved the court against Invesco’s call for an EGM and to declare it illegal and invalid. The high court had reserved its order on the issue last week after ZEEL had told the court that it was not willing to hold an EGM of shareholders as requested by Invesco.

Although the Bombay HC has restrained Invesco from taking any action in furtherance of their requisition notice to call an EGM, the court has not declared the call for an EGM illegal or invalid.

The HC order means that EGM cannot be convened until it decides whether the requisition notice is valid or not on the grounds raised by Zee, observers said.

The high court had last week reserved its order on the issue last week after ZEEL had told the court that it was not willing to hold an EGM of shareholders as requested by its Invesco. The promoter group — Subhash Chandra family — holds only a four per cent stake in ZEEL.

ZEEL has commenced the due diligence process for its proposed merger with Sony Pictures Networks India (SPNI), a subsidiary of Japan’s Sony Corp, following a non-binding agreement signed in September.

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