Invesco is seeking an EGM to oust promoter and MD Punit Goenka, from the company’s board
The Division Bench of the Bombay High Court will continue to hear the matter between Zee Entertainment Enterprises and Invesco on November 30.
Last month, the single Bench of Justice Patel in the Bombay High Court granted Zee an injunction against Invesco’s requisition to call an extraordinary general meeting. Invesco filed an appeal with the higher Bench at BHC presided by Justice SJ Kathawala and Justice Milind Jadhav.
Janak Dwarkadas, counsel appearing for OFI Global China Fund which holds nearly 18 per cent of the company shares along with Zee noted that “Bombay High Court Bench had earlier suggested that even a single shareholder can block a requisition if he feels it is invalid.”
He further added that Zee hijacked National Company Law Tribunal (NCLT) proceedings by filing a suit before Bombay HC. According to Dwarkadas, NCLT has the jurisdiction to decide whether or not to grant the requisition of the EGM.
The Division Bench adjourned the hearing for today, and the matter will be heard again on November 30.
Invesco is the largest minority shareholder for ZEEL, and it is seeking an EGM to oust promoter and MD Punit Goenka, from the company’s board.
Merger with Sony Pictures
Meanwhile, Zee is in the midst of completing its due diligence for a potential merger with Sony Pictures Entertainment Network. Earlier this month, Punit Goenka stated that Zee and Sony are completing their final stitches, so far, both the parties have signed a non-binding term sheet regarding the merger. While Invesco has previously stated that it is not against the merger, they want it to be approved by a non-Punit Goenka controlled board.
Earlier this February, Invesco also approached Zee promoters, Goenka, for a potential merger with Reliance’s entertainment properties. Goenka has alleged that Invesco’s requisition for an EGM seeking his ouster, is not due to corporate misgovernance, rather a clandestine corporate takeover at the behest of Reliance. The Hindu BusinessLine