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zee: HC asks Zee to call EGM over Invesco demand


MUMBAI: The Bombay high court on Thursday asked the board of Zee Entertainment Enterprises (Zee) to call for a special shareholders’ meet as demanded by largest investor Invesco to remove MD Punit Goenka from the company. However, it added that the voting result of the special shareholders meet or extraordinary general meeting (EGM) must be “kept in abeyance” till it decides on the legality of the demand raised by Invesco. The EGM resolution will be subject to the information and broadcasting ministry’s approval, the court further said. Besides the ouster of Goenka from Zee, American fund Invesco, which holds nearly 18% in the media and entertainment company, has sought the induction of multiple independent directors on the board of the investee. The court also asked the warring parties to propose an EGM date and name of a neutral chairman to conduct the meeting. Zee will inform the court about the EGM date on Friday. In that case, Invesco will withdraw its petition against Zee from the National Company Law Tribunal (NCLT) where it had complained that the company failed to announce an EGM date to remove Goenka. The matter at NCLT is slated for hearing on October 26. The Bombay high court said that Zee’s right to contest the validity of the resolutions after the EGM can be reserved and that it was premature to assume that the resolutions will be passed or not. On Thursday, the Bombay high court was hearing a case filed by Zee that sought to declare Invesco’s demand as invalid on grounds that it suffered from multiple legal infirmities.

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