A Zee spokesperson mentioned the corporate will take “required steps in accordance with the regulation” and in the very best curiosity of its stakeholders.
In a setback for Zee Entertainment Enterprises (Zee), the Bombay Excessive Court docket on Tuesday allowed an attraction filed by Invesco Growing Markets Fund towards a single-judge order granting interim injunction on holding a rare normal assembly (EGM) to take away CEO Punit Goenka.
Invesco is the single-largest shareholder of Zee with a 17.88% stake.
A division bench of Justices SJ Kathawalla and Milind Jadhav, whereas quashing and setting apart the single-judge order of October 2021, directed that established order be maintained for 3 weeks, to allow Zee to attraction towards the order within the Supreme Court docket.
A Zee spokesperson mentioned the corporate will take “required steps in accordance with the regulation” and in the very best curiosity of its stakeholders. “We respect the choice taken by the Bombay Excessive Court docket. Whereas we’re awaiting the written order, the corporate has full religion within the Indian judicial system and can proceed to take the required steps in accordance with the regulation; and most above, in the very best curiosity of its stakeholders,” the spokesperson mentioned.
Authorized observers mentioned Zee will definitely attraction towards the order. Nevertheless, the reduction which it’s looking for — not convening an EGM – can solely come if the SC stays the HC’s order until it disposes of the matter.
Within the occasion of no keep order from the apex court docket, the Nationwide Firm Legislation Tribunal’s Mumbai bench can proceed listening to the case. Invesco had earlier moved the tribunal.
The struggle between Zee and Invesco began when on September 11 final 12 months the latter issued a requisition letter asking Zee’s board to carry an EGM to evict sure administrators, together with its CEO and managing director Punit Goenka, alleging breach of company governance norms.
Invesco, together with its subsidiary OFI World China Fund, had sought induction of six of its nominees on Zee’s board. Invesco had raised issues on the media agency’s proposed merger with Sony Image Networks India, terming it “unfairly” favouring the founding household.
Zee’s board, later in its assembly on October 1, termed the request “invalid and unlawful”.
On its half, Zee rejected the request, citing “authorized infirmities” and afterward October 2 moved the Bombay HC asking it to declare the requisition “unlawful”. A single-judge bench in October 2021 granted an injunction towards holding of the EGM.
The event comes at a time when Sony and Zee Leisure are within the means of merging their companies. The merger would wish the approval of the shareholders of the corporate.
In September, Zee’s board had additionally authorised a merger of the corporate with rival Sony Footage Networks India (SPNI), a subsidiary of Japan’s Sony Company. If the deal will get regulatory and shareholder approvals, it might create the nation’s largest media and leisure firm.