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business | IST

Zee Entertainment moves NCLAT challenging NCLT order on Invesco's plea for EGM

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There are three legal cases now which will be fought between Zee Entertainment and Invesco.

Zee Entertainment has moved the National Company Law Appellate Tribunal (NCLAT) challenging the National Company Law Tribunal (NCLT) order seeking reply over the requisition of minority shareholders Invesco and OFI Global China Fund to convene an Extraordinary General Meeting (EGM).
The minority shareholders seek the EGM to discuss various issues, including the removal of Managing Director Punit Goenka.
The Mumbai bench of the National Company Law Tribunal on Tuesday directed Zee Entertainment Enterprises Ltd (ZEEL) to file a reply over the petition filed by its minority shareholders by October 7.
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Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) along with OFI Global China Fund LLC hold 17.88 percent stake in ZEEL. Last week, the board of the company had rejected the minority shareholders' demand and termed the requisition as "invalid and illegal".
"In its meeting held on October 1, 2021, the board has arrived at a conclusion that the requisition is invalid and illegal; and has accordingly conveyed its inability to convene the Extraordinary General Meeting to Invesco Developing Markets Funds and OFI Global China Fund, LLC," ZEEL had said. The meeting was convened after the NCLT had directed ZEEL to hold a board meeting to consider Invesco and OFI Global China Fund's request for convening an EGM for discussing various issues.
On Tuesday, NCLT had said the matter of the dispute is simple - whether the Extraordinary General Meeting (EGM) requisition is valid or not and it cannot give Zee Entertainment Enterprises ''weeks and weeks'' of time for filing its reply to the same. "Orders cannot be passed with an opportunity of filing a counter... and we are of the view that minimum opportunity time should be given," the NCLT had said while posting the matter on Thursday for the next hearing.
US-based Invesco and OFI Global China Fund had moved a petition seeking convening of the EGM, removing the company's Chief Executive and Managing Director Punit Goenka as well as two other directors, and reconstituting the board with the appointment of six new directors. Earlier this month, the two investment firms had called for the EGM seeking to remove Punit Goenka along with two other independent directors - Manish Chokhani and Ashok Kurien. Chokhani and Kurien have already resigned.
Invesco has also sought the appointment of six of its own nominees on the board of the company - Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta. Goenka is the son of Zee Founder and Chairman of Essel Group Subhash Chandra.
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