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In a win for Invesco, the Bombay High Court has asked Zee Entertainment to conduct the extraordinary general meeting requested by the American investment firm.
Invesco is the largest shareholder in Zee Entertainment and has been pushing for an EGM to seek shareholders’ vote on a proposal to oust the promoter and CEO Punit Goenka from the company board.
Zee promoters may flag ‘conflict of interest’ issue on Invesco’s RIL holdings
Zee to respond today
Zee will respond to the High Court’s direction by Friday. The court also asked Zee to appoint a former Supreme Court or High Court judge to oversee the EGM proceedings as a neutral party.
The resolutions passed in the EGM will not be immediately acted upon; rather, Zee can appeal to the courts regarding the legality and validity of the Invesco resolution, should it be passed.
This decision comes after a month-long battle between the media company and the American investment firm. Invesco had initially sought the ouster of Goenka on the grounds of corporate misgovernance. Requisition for the EGM was made by Invesco on September 11. Zee’s board rejected Invesco’s request for conducting the EGM, terming it illegal and invalid.
The Bombay High Court said that it was premature to decide whether the call for EGM itself was illegal. According to the court, it is only after Invesco’s resolutions get voted on by the Zee shareholders the matter can be hashed out in courts. The court has provided Zee with a time period of seven days after the EGM to appeal once the EGM is conducted and the resolution is passed. This EGM will be the conclusion to the dramatic battle between Zee and Invesco which has been ongoing for more than a month.
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