Proxy advisory firm Institutional Investor Advisory Service (IiAS) has raised concerns against Subhash Chandra-backed Zee Entertainment regarding corporate governance. IiAS is advising shareholders to vote against the re-appointment of Manish Chokhani and Ashok Kurien to the board of directors.

Earlier this week, Chandra's brother Jawahar Goel's Dish TV also came under fire, when YES Bank proposed to oust the company’s entire board of directors including Goel.

IiAS said in its report that “Manish Chokhani was on the Audit Committee in FY20 and is accountable for the losses on account of related party transactions, which resulted in significant erosion in shareholders wealth. As a member of the Nomination and Remuneration Committee, he is accountable for not professionalizing the board, especially given that promoter equity has declined drastically. He is also accountable for the failure to address and adequately deal with governance concerns that led to the resignation of independent directors in the past.”

IiAS also said in their report that, as members of the Nomination & Remuneration Committee (NRC), Chokhani and Kurien are also accountable for the poor management of Punit Goenka’s remuneration, which was increased by 46 per cent. This was higher than what shareholders approved in the 2020 AGM. Meanwhile, employees were given no raise for FY21.

“The Company reiterates that the NRC has finalised the overall remuneration framework, after a structured evaluation process and has implemented the same with the approval of the Board. Other credible proxy advisors, including certain reputed international firms, have recommended voting in support of the appointment of the said NRC members." said a company spokesperson for Zee Entertainment Enterprises.

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