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ZEE Entertainment shareholders reject Punit Goenka’s reappointment as Director

The promoters — Punit Goenka and Subhash Chandra family — hold only 3.99 per cent stake in the company.

ZEEL shares were trading higher by 4.10 per cent at Rs 128.20 on the exchanges early on Friday. (Express Archives)

Shareholders of Zee Entertainment Enterprises Ltd (ZEEL) have blocked Punit Goenka’s reappointment as a director of the company at the company’s annual general meeting (AGM).

At the EGM on Thursday, as many as 50.45 per cent shareholders were against Goenka being reappointed as Director, whereas 49.54 per cent of shareholders voted in favour, according to the exchange filing. “Resolution No. 3 (re-appointment of Goenka as Director) failed to get requisite majority of votes as required under the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” the firm said in the exchange filing.

The promoters — Punit Goenka and Subhash Chandra family — hold only 3.99 per cent stake in the company.

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ZEEL shares were trading higher by 4.10 per cent at Rs 128.20 on the exchanges at 10.45 am IST on Friday. Mutual funds hold 12.39 per cent and foreign institutions 18.52 per cent stake in the company.

However, Goenka will continue as CEO of the company.

Also Read | ZEE Entertainment Ltd, Sony settle dispute

On November 18, Punit Goenka, son of media baron Subash Chandra, resigned as the Managing Director of Zee Entertainment. ZEEL had then informed exchanges that its board accepted the resignation of Goenka as MD of the company and appointed him as CEO.

“With this step, he intends to dedicate his time entirely towards the future of the company by enhancing its performance and profitability levels in line with the direction given by the Board/ Nomination and Remuneration Committee in its meeting dated November 15, 2024,” ZEEL had said.

Goenka also withdrew himself from reappointment for the post of MD in the AGM, according to an exchange filing. While sharing Goenka’s resignation letter to exchanges, ZEEL said he is “withdrawing his consent for his re-appointment as Managing Director of the company as proposed in the notice of the ensuing annual general meeting”.

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Earlier, in August 2024, more than seven months after Sony Pictures called off the $10 billion merger deal with ZEEL on account of ZEEL’s purported delay in completing merger formalities, both parties announced a settlement to conclude all the dispute.

Both sides arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the Merger Co-operation Agreement and the Composite Scheme of Arrangement.