Invesco and OFL Global China Fund, holding together a stake of 17.88 % in ZEEL had earlier proposed for the eviction of Punit Goenka, the company’s CEO (Chief Executive Officer) and Managing Director and two other non-executive directors.
Zee Entertainment Enterprises (ZEEL) moved National Company Law Appellate Tribunal (NCLAT) opposing the order of the National Company Law Tribunal (NCLT) on October 6, 2021, after the latter asked it to file a reply to Invesco’s plea by October 7, 2021.
The entertainment company ZEEL is asking for more time to reply to the petition filed by Invesco Developing Market Fund to summon the EGM (Extraordinary General Meeting). Additionally, the company also seeks the stay of the NCLT’s proceedings till the NCLAT presents its final judgment. The filed petition is expected to come before NCLAT for judgment on Thursday.
ZEEL’s spokesperson disclosed the company’s move of seeking more time in NCLAT. The company also informed that it had filed a suit in Bombay High Court to announce that the notice sent by its shareholders Invesco Developing Market Funds along with its subsidiary company OFI Global China Fund LLC on the requisition of summoning the EGM was invalid. The company said that it has the utmost faith in the Indian judicial system and would take steps that are requisites for the best interests of all its shareholders.
It all started when ZEEL declined the request of its shareholders Invesco Developing Market Funds and OFI Global China Fund app proposing the requisition to convene an EGM in order to oust certain directors from the board.
The dishonored shareholders, holding together a stake of 17.88 % in ZEEL had earlier proposed for the eviction of Punit Goenka, the company’s CEO (Chief Executive Officer) and Managing Director, and two other non-executive directors, accusing them of breaching corporate governance norms. Besides the eviction, Invesco and OFL Global China Fund also requested for introducing six of its nominees on board of ZEEL.
Opposing the proposal put forward by ZEEL’s foreign portfolio investors, the company’s counsel and senior advocate Navroz Seervai said before NCLT that the requisition for the extraordinary general meeting was supposed to be dismissed by the tribunal since an injunction could be granted only in the case of rare and extraordinary circumstances. He added that the investors were looking for ad-interim relief which can only be given post the final hearing of the case.
However, NCLT reacted saying the dispute is on the matter if the requisition of the EGM is valid or not and hence, the tribunal cannot grant more time to ZEEL to file its reply. Bhaskara Pantula Mohan and Narendra Kumar Bhola from the tribunal said that they are of the view of giving minimum opportunity time to ZEEL.