Invesco drags Zee to tribunal over EGM call
MUMBAI: US investor Invesco on Wednesday approached the National Company Law Tribunal (NCLT) against Zee Entertainment Enterprises Ltd for failing to announce a date for the extraordinary general meeting (EGM) to remove Zee’s chief executive and managing director, Punit Goenka, as a director and reconstitute the board.
The Mumbai bench of NCLT has listed the case for hearing on Thursday.
Dhruve Liladhar and Co. is representing Invesco, while Trilegal is representing Zee, according to two executives familiar with the development. Both law firms declined to comment on the development.
“The company’s failure to take steps within its notice period to call an EGM, coupled with its delay in noticing our EGM on 11 September and failure to notice our 23 September letter to the exchanges, has prompted us to file a petition before NCLT to enforce our rights as shareholders to call for this EGM,” said a spokeswoman for Invesco.
“On September 11, we sent an EGM requisition letter to Zee, exercising our rights as ordinary shareholders to protect shareholder value in the company. This initiative, which is unique in the history of our fund, was taken with the belief that a newly constituted board elected by its shareholders would be foundational in reviving the long-term health of the business,” said Invesco. “On 23 September, we reiterated our call for an EGM in a letter to the board of directors of Zee.”
Under the current rules governing listed firms, a company has three weeks to announce a date for an EGM from the day it receives such a request from an investor who holds at least 10% shares. Invesco is Zee’s largest shareholder, owning 17.88% through Invesco Developing
Market Fund and OFI Global China Fund Llc.
Invesco’s first letter dated September 11, demanding an EGM, was received by Zee on September 12. This means Zee has until October 2 to announce a date for an EGM.
If Zee fails to announce a date for an EGM by this weekend, then starting next week, Invesco can announce a date for a meeting, which can be held after three weeks. At the EGM, Invesco can ask shareholders to vote on its proposal to sack Goenka and induct six new independent directors on the board of Zee.