HC rules Invesco’s EGM requisition is not illegal
MUMBAI: Invesco Developing Markets Fund’s requisition to Zee Entertainment Enterprises Ltd for holding an extraordinary general meeting is not illegal, a division bench of Bombay High Court said on Tuesday.
This comes as a relief for the global fund, which is fighting a legal tussle with the media company for more than six months now.
A detailed order in the matter, however, is awaited from the division bench of Justice S.J. Kathawalla and Justice Milind Jadhav, which is hearing the matter.
“The EGM requisition notice is neither incapable nor illegal to be set aside. Consequently, we have set aside all single judge’s finding on all counts,” Justice Kathawalla said.
This order will come into effect after three weeks, the court said. Zee is likely to challenge the order before the Supreme Court to seek relief.
In November, Invesco Developing Markets Fund and OFI Global China Fund moved Bombay High Court against the October 2021 order of the singlejudge bench of Justice G.S. Patel.
The order by Justice Patel restrained Invesco Developing Markets Fund and OFI Global China Fund from taking any action against Zee Entertainment Enterprises in a matter pertaining to a requisition for an extraordinary general meeting (EGM).
The order also barred the global funds from calling and holding the meeting on their own for the time being.
The legal tussle between Zee and Invesco, along with its affiliate OFI Global, started on September 11 when the latter requisitioned the Zee to hold an EGM to remove Punit Goenka as the managing director and chief executive officer and appoint six other additional directors on the board of the media company.
Invesco and OFI Global China together moved the National Company Law Tribunal against Zee Entertainment Enterprises, requesting the tribunal to order the company to hold an EGM.
On October 2, Zee moved the high court to declare the requisition of Invesco as “illegal” and “invalid”.
Invesco and OFI Global China Fund, the largest shareholders in Zee hold nearly 18% stake in the company.
Zee and Invesco have been accusing each other of significant corporate governance lapses.
The development may probably prolong Zee’s merger deal with Sony if Invesco calls for an EGM. The dispute can prolong further if the matter is heard by the Supreme Court.
Meanwhile, NCLT will hear Invesco’s petition on March 31.