BSE asks Zee Entertainment to furnish resignation letters of board of directors

Mumbai | Updated on November 28, 2019 Published on November 28, 2019

The Bombay Stock Exchange (BSE) has asked Zee Entertainment to furnish the resignation letters of the board of directors who quit the company earlier this week.

"In order to ensure that adequate, accurate, explicit disclosure of information and enabling access to relevant and sufficient information for all stakeholders, you are requested to submit, as announcement to the Exchange, the copies of resignation letters of all the three resigning directors mentioned in above letter," BSE said in a clarification sought from Zee Entertainment.

Two directors Subodh Kumar (non-independent director) and Neharika Vohra (independent director) had quit earlier this week. According to filings by ZEEL with the stock exchanges, the reasons cited by the two former directors include concerns over film advances given in 2018-19 to the tune of Rs 2,200 crore and appropriation of Rs 200 crore by a scheduled bank from the company’s fixed deposits towards promotor loans for which the management had not taken legal action.

Other reasons include alleged laxity in spending for CSR (the amounts were given to a related party foundation/trust), non-implementation of a certain decision of the board meeting held on October 17, relating to treasury operations, no action on large outstanding from Dish TV and siticable for the content supplied by ZEEL.

“The board of directors has noted that all of the issues raised by the resigning directors have been duly discussed, deliberated and acted upon from time to time in the previous committee or board meetings in which the said directors were also present,” ZEEL said in a statement.

Another director Sunil Sharma (independent director), in his resignation letter dated November 24, informed that subsequent to sale of shares by the promoter group and reconstitution of the board, he had tendered his resignation.

Zee Entertainment stock declined over 4 per cent on Thursday on BSE.

Published on November 28, 2019
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