The National Company Law Tribunal (NCLT) has instructed ZEE Entertainment Enterprises Limited to hold an extraordinary general meeting (EGM) as sought by shareholder Invesco Developing Market Funds.
Invesco, which along with OFI Global China Fund LLC holds a 18% stake in ZEEL, had demanded an EGM to oust three directors of the company, including MD and CEO Punit Goenka. However, since then, Goenka became instrumental in a potential merger between ZEE and Sony Pictures Networks India.
The NCLT said it is the “mandate of the law” that ZEE should call for the EGM. It will be taking up the matter for hearing on Monday 4th October and said the ZEE board must “comply with Section 100 of the Companies Act”. “No power vested with the board to deny EGM,” it reiterated.
A ZEE spokesperson said, “The Board of the Company is scheduled to meet as per the statutory time allotted, in relation to the matter. The Company will continue to take all the actions needed in the interest of the shareholders and as per law.”