Homebusiness News

Zee Entertainment AGM: From resignations of two directors to Goenka's response; here are key highlights

Zee Entertainment AGM: From resignations of two directors to Goenka's response; here are key highlights

Zee Entertainment AGM: From resignations of two directors to Goenka's response; here are key highlights
Profile image

By CNBCTV18.com Sept 15, 2021 11:45:51 AM IST (Published)

In the wake of the demand to remove Punit Goenka from the position of managing director and chief executive officer of the company, Zee Entertainment Enterprises held its 39th annual general meeting (AGM) of the equity shareholders on Tuesday.

In the wake of the demand to remove Punit Goenka from the position of managing director and chief executive officer of the company, Zee Entertainment Enterprises held its 39th annual general meeting (AGM) of the equity shareholders on Tuesday.

Recommended Articles

View All

Two investors — Invesco Developing Markets Fund and OFI Global China Fund LLC — which together hold 17.88 percent share in Zee Entertainment had sought the removal of three directors, including Zee founder Subhash Chandra’s son Punit Goenka. After the AGM, two independent directors — Manish Chokhani and Ashok Kurien — resigned from the board.
Meanwhile, Goenka responded to the queries raised by the shareholders during the meeting. According to the report released by the company after the AGM, six resolutions were passed with the requisite majority during the meeting.
Here are the resolutions that were adopted by the company:
— Adoption of audited financial statements of the company on a standalone and consolidated basis for the financial year ended March 31, 2021, including the Balance sheet, Statement of Profit & Loss, and the reports of the Auditors and Directors thereon.
— Confirmation of dividend paid on preference shares by the company during, and for, the financial year ended March 31, 2021.
— Declaration of a dividend of Rs 2.50 per equity share for the financial year, ended March 31, 2021
— Ratification of remuneration payable to cost auditor for FY 2020-21.
— Appointment of Sasha Mirchandani as an independent director of the company.
— Appointment of Vivek Mehra as an independent director of the company.
The resolutions that remain pending are:
— Re-appointment of Ashok Kurien as a director of the company.
— Appointment of Manish Chokhani as a director of the company.
Highlights of the AGM
— During the meeting, Goenka said that the decrease in the company revenue during 2020-21 was largely due to the pandemic.
— He added that nearly 83 percent of company employees have taken their first dose and 19 percent have taken both doses. "We have done vaccination drives across all our offices across India and international markets," said Goenka.
— Also, travel and conveyance expenses of the company came down from Rs 88 crore in 2019-20 to Rs 63 crore in 20-21 due to the pandemic. He, however, added that virtual meetings cost Rs 25 lakh to the company.
— In terms of the company's whistleblower policy, he pointed out that no frauds were detected last fiscal.
— Goenka added that the "exceptional expenditure incurred in Q1 of FY22" was on account of relocation of shoots to alternate locations in view of the pandemic.
— On the issue of Zee Anmol losing market share, Goenka assured stakeholders that the company has plans in place to regain market share. "You will start to see these going up in the coming quarters," he added.
— In regards to the resignation of Manish Chokhani and Ashok Kurien, Goenka said, "I think we must respect the choice of wanting to spend their time in other things that they are devoted to."
— He said Zee Studios suffered the biggest financial impact as the cinemas were shut during the pandemic. "Certain states are still to open the theaters and malls and that business continues to be impacted," he said.
— He told the stakeholders that Zee5 is present in 190 countries.
— Goenka informed the stakeholders that the company puts a strong emphasis on corporate governance.
— The Corporate Social Responsibility investment of the company for 2020-21 was Rs 50 crore, out of which Rs 33.5 crore was spent for COVID-19.
After the AGM, the shares of Zee Entertainment Enterprises Ltd rallied 40 percent.
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!