Zee board rejects Invesco's demand to hold EGM to remove Punit Goenka

Taking a confrontation stand against its largest shareholder, the Zee board on Friday rejected its demand to hold an extraordinary general meeting to remove current MD and CEO, Punit Goenka and induct its nominees.

In a statement to the stock exchanges, Zee said its board deliberated and discussed various legal and statutory implications of the requisition notice.

The Board sought the opinions of independent counsel, legal experts including senior retired Supreme Court judges and evaluated the matter in a fair and transparent manner, the company said. "In its meeting held on 1st October 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," it added.

"The Board has arrived at this decision 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. The Company cannot comment on any future actions since the matter is sub judice, it said.

This move, say legal experts, will result in a legal war as Invesco has already moved the. National Company Law Tribunal (NCLT) and the court had asked Zee to hold the meeting to consider the EGM. The NCLT willl hear the case again on Monday.

Bankers say options before Invesco, a fund backed by Oppenheimer, is to sell its shares to any other rival TV network company and let the incoming shareholder make a counter offer to Zee-Sony transaction.