Zee moves Bombay HC against Invesco’s requisition for EGM

A day after rejecting its largest shareholder Invesco Funds’ request to hold an extraordinary general meeting, Zee Entertainment Enterprises on Saturday moved the Bombay High Court asking the court to declare that the shareholders’ meeting requisition notice sent by Invesco is “illegal and invalid”.

Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) along with OFI Global China Fund LLC hold 17.88 per cent stake in Zee. In a letter dated September 11, the funds had asked the Zee board to remove two directors, Manish Chokhani and Ashok Kurien for corporate governance lapses. While both directors quit a day before the annual general meeting on September 13, Goenka continued to remain on the board. Within days, Zee announced a merger deal with rival Sony Pictures with the latter getting a majority stake and leading to dilution of stake of all Zee shareholders. The promoter Subhash Chandra family, however, retained their stake in the merged entity at 4 per cent after receiving an additional 2 per cent stake from Sony as non-compete.

In its statement yesterday, Zee said its board arrived at decision to not convene the EGM by referring to various non-compliances under multiple laws, including the Securities and Exchange Board of India guidelines, Ministry of Information and Broadcasting Guidelines and key clauses under the Companies Act & Competition Act, and after taking into account the interests of all the shareholders and stakeholders of the company.

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