Mumbai: Investco, the largest shareholder in Zee Entertainment Enterprises, does not conflict with the company’s merger proposed with the Sony Pictures network but wants a new board to evaluate the agreement and decide on “future leadership”, it is said in a letter to the company’s board.
While the proposed agreement allows ZEE MD Punit Goenka to be responsible for combined business, US-based funds, which hold 18% in Zee, have been looking for Rejig from the Corporate Board including its Ouster.
Investco said, “The newly supported board with the power of independence will be best suitable for evaluating and overseeing the potential of strategic transactions, as announced (with Sony), and to make determination about company leadership in the future.” “We noted that the disclosure of September 22 ( The announcement of the merger) refers to the composition of the company’s future councils when the composition of the Board is currently subject to shareholder shareholders on the back of our EGM request list.
” Investco has asked Zee to summon the extraordinary general meeting (Rug) of shareholders who are looking for the elimination of three non-independent directors and induction of six new independent directors on their councils.
Two non-independent directors then resigned, while Goenka continued.
“We believe that the current board will comply with fiduciary tasks and not violate its legal obligations to hold an EGM as possible by Investco,” said the fund.
After Investco wrote looking for EGM, the company signed a non-binding agreement with Sony, which allowed Goenka to become a MD of entities that joined and his family to accommodate up to 20% in it.
“We continue to believe that business (ZEE) is valuable, either alone or in strategic alignment with partners such as Sony.
However, strategic import decisions must follow and do not precede actions against the formation of appropriate and independent governance structures as determined by the Company’s shareholders, “Read the invesco letter signed by VP Aroon Blani.
“In this context and contrary to the background of our EGM demand, your disclosure on September 22 is a symptom in an erratic manner where important and serious decisions have been handled in the company.” When asked about Investco’s reaction, spokesman Zee said, “The council was confiscated about this issue.
The company will take the necessary actions according to applicable law.” Explaining the reason for EGM’s request, Investco said, “Right to protect the value of shareholders and in running Our legal rights as ordinary shareholders, we have asked the company to hold an EGMS, and it is your duty based on company law for now.
Do it.
In this rug, shareholders will decide on the composition of the company’s board freely and democratically.
” According to the rules, the board must call for an EGM within 21 days after receiving such requests and the meeting must be held.
Within 45 days from the date of receipt needed.