Mumbai: The Zee Entertainment Enterprises Board rejects invesco demand for the largest shareholder for special shareholders to remove MD Punit Goenka from the company, citing “invalid and illegal” requests.
The development of intensifying the battle between US funds and the Zee Board, where Investco has around 18%.
The Board decision came a day after the National Law of Tribunal Law (NCLT) directed it to consider invesco’s request to hold an extraordinary general meeting (Rugm) to remove Goenka and appointed several independent directors.
On Friday, Zee said the council decided not to hold EGM because invesco’s request suffered law weakness.
“The Board has arrived at this decision by referring to various non-compliance under many laws …
after taking into account the interests of all the company’s shareholders.” Zee said the council’s decision was based on legal advice received from experts, including retired Supreme Court judges.
The seven members consisted of one non-independent director (Goenka) and six independent directors.
Because Goenka was interested parties, he did not participate in the Friday council meeting, the company said.
Zee will send council replies to the petition submitted by Investco in NCLT, who will hear the problem 4.
Explain the reason for rejecting the request of Invesco, said Zee, US fund proposal to appoint 50% of the COMPANY COMPANY will produce “this influences the change in the company’s control without Do open offers “.
However, a lawyer said Investco was seeking the appointment of “Independent Director” in the Zee Council and “not their candidate director”, increasing doubts whether this would change in control.
In addition, according to the Guidelines for Invesco Regulatory, US funds cannot accommodate more than 20% in any stock, which means it cannot make an open offer.
Zee further said that the assessment (AOA) did not allow more than 12 directors at the council.
Because the proposal to remove Goenka cannot be legally, and a proposal to appoint six independent directors is influenced, the Zee Council will consist of 13 members, which will contrary to it (AOA), he said.
Zee also said that the I & B ministry requires to influence any changes in the CEO and the Company’s Council, their permission needs to be taken before.