homebusiness News

Regulatory hurdles likely to delay Zee Sony merger; Invesco’s NCLT move premature: Experts

business | Sept 30, 2021 11:01 AM IST

Regulatory hurdles likely to delay Zee-Sony merger; Invesco’s NCLT move premature: Experts

Mini

The boardroom battle between Zee Entertainment and Invesco is getting more intense. Invesco has moved the National Company Law Tribunal (NCLT) against Zee Entertainment for failing to announce a date for the extraordinary general meeting (EGM) - Invesco had earlier demanded that an EGM be held to reshuffle the board. They had also sought Puneet Goenka's ouster from the board. HP Ranina, corporate lawyer, JN Gupta, former ED, SEBI and MD at Stakeholders Empowerment Services, and Shriram Subramanian, founder and MD, InGovern, discussed this further.

The boardroom battle between Zee Entertainment and Invesco is getting more intense. Invesco has moved the National Company Law Tribunal (NCLT) against Zee Entertainment for failing to announce a date for the extraordinary general meeting (EGM) - Invesco had earlier demanded that an EGM be held to reshuffle the board. They had also sought Puneet Goenka's ouster from the board. HP Ranina, corporate lawyer, JN Gupta, former ED, SEBI and MD at Stakeholders Empowerment Services, and Shriram Subramanian, founder and MD, InGovern, discussed this further.

Recommended Articles

View All

JN Gupta believes it is a premature action.
“To me, it appears to be a premature action and I am wondering how NCLT is entertaining it unless until the application talks about something else,” he said.
According to his calculation, the time limit is up to October 3, 21 days from the day when one receives the notice. The day of receiving the notice is always excluded. So, if the notice was received on September 12, it will start from September 13, he explained.
Also Read:
Even if EGM is not called, there is no remedy in NCLT because the law provides that if the company fails to call the EGM, then the shareholders have the authority to call the EGM themselves, he mentioned.
According to Ranina, the whole process of merger of Zee and Sony is going to be delayed because of this.
“Whichever way it goes, it will help either party because it will expedite the issue one way or the other. Whether it will help the investors or whether it will help the current board and the Zee promoters along with the present managing director Punit Goenka – so one way or the other, the matter is going to be resolved but there will be a delay for sure. Once the NCLT gives the order, either party will go to the National Company Law Appellate Tribunal (NCLAT) and then possibly to Supreme Court (SC), so delay is inevitable,” Ranina said.
While Subramanian noted that no analyst has questioned the rationale of the merger between Zee and Sony including Invesco.
“Zee-Sony deal itself is a very positive step for investors at large because Sony will be at the helm of affairs, it will be having majority of the board members, will have 53 percent shareholding. So, I would think that is a huge positive for investors at large,” Subramanian said.
For the entire disco, watch the accompanying video.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng