ZEEL refuses to carry EGM, calls Invesco request ‘invalid, illegal’

Zee Entertainment Enterprises (ZEEL) on Friday mentioned it will not be capable of convene a unprecedented basic assembly (EGM), as the corporate’s board has discovered the requisitions made by its prime international investor to be “invalid and illegal”.
The firm mentioned its board had sought opinions of impartial counsel, authorized consultants together with senior retired Supreme Court judges and evaluated the matter in a good and clear method.
In its assembly on Friday, the board of ZEEL arrived at a conclusion that the requisition was invalid and unlawful. Accordingly, it conveyed its incapacity to convene the EGM to Invesco Developing Markets Funds and OFI Global China Fund, LLC. Citing “multiple legal infirmities,” ZEEL mentioned the transfer comes forward of the following listening to within the National Company Law Tribunal (NCLT) on Monday.

The ZEEL board mentioned it arrived at this choice by referring to numerous non-compliances below Sebi and Ministry of Information and Broadcasting pointers and Companies Act, amongst others. It has additionally taken into consideration curiosity of all shareholders and stakeholders of the corporate, it added. “Accordingly, in the best interests of the company as a whole, including all its shareholders and stakeholders, we express our inability to convene the EGM,” ZEEL mentioned.
In its September 11 requisition letter, Invesco had sought convening an EGM to take away managing director and chief government officer Punit Goenka, and non-executive administrators Ashok Kurien and Manish Chokhani, alleging breach of company governance norms.

Invesco (previously Invesco Oppenheimer Developing Markets Fund), which along with its subsidiary OFI Global China Fund holds a 17.88 per cent stake in ZEEL, had additionally sought appointment of its six members on ZEEL’s board.