NCLT directs Zee board to consider Invesco’s demand for EGM
Following the order, a meeting of the independent directors of the board was held on Thursday evening and the meeting remained inconclusive till it went to the press.
The meeting followed a direction of a division bench of Bhaskar Pantula Mohan and Chandrabhan Singh, who asked the board of the company to comply with the Companies Act, 2013, which states that the board of the company shall, at least on the request made by the shareholders Will not done. One tenth of the paid-up share capital of the company will be called as EGM.
Invesco Developing Markets Fund and OFI Global China Fund LLC hold 17.88 per cent in Zee Entertainment.
A Zee Entertainment spokesperson said: “The Board of the Company is to meet as per the allotted statutory time regarding this matter. The company will continue to take necessary action in the interest of the shareholders.”
The next hearing of the case will be on October 4.
The company has to convene the EGM within 21 days from the receipt of demand by the shareholder holding more than 10 per cent stake in the firm and keep the same within 45 days. If this is not done, the meeting may be called and held by the demander within three months from the date of the demand.
In this case, the company has over 250,000 public shareholders and therefore Invesco was unable to take this route.
Gopal Subramaniam, representing Zee Entertainment, told the bench that it depends on the facts of each case whether the company’s board wants to hold the EGM or not.
To this the bench said that it is not the discretion of the Board alone to call the EGM.
As the Board of the Company failed to convene the EGM and with the 21-day deadline for such meeting looming, Invesco Developing Markets Fund and OFI Global China Fund LLC approached the NCLT, seeking directions to the Company to call sought the intervention of the Tribunal. EGM.
Senior advocate Mukul Rohatgi, representing Invesco, said the reason for transferring the NCLT was that the company was not running as smoothly as it should have. Therefore, it seeks an EGM for the removal of Zee Entertainment’s Managing Director and Chief Executive Officer Puneet Goenka and two other directors who have resigned and for appointment of independent directors.
Janak Dwarkadas, appearing for Invesco, said the fund was apprehensive that the board would not convene the EGM as the company had informed the stock exchanges that it has signed a non-binding term sheet agreement with Sony Pictures.
Mohit Saraf, Founder and Managing Partner, Saraf & Partners, said: “NCLT observed that the board of Zee is bound to convene the EGM as per the shareholder’s request.”
</div><div style="background: #fee8dd; padding: 12px; border: dashed 1px black; margin-bottom: 20px;">
Business Standard has always worked hard to provide updated information and commentary on events that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has further strengthened our resolve and commitment to these ideals. Even during these difficult times arising out of COVID-19, we are committed to keeping you informed and updated with relevant news, authoritative views and sharp comments on relevant relevant issues.
However, we have a request.
As we grapple with the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. Subscribing to more of our online content can only help us achieve our goals of providing you with better and more relevant content. We believe in independent, unbiased and credible journalism. Your support through more subscriptions can help us practice the journalism we’re committed to.
support quality journalism and Subscribe to Business Standard.
this is an unedited and auto-generated supporting article of the syndicated news feed are actualy credit for owners of origin centers. intended only to inform and update you about Sakari naukri , result , UPSC , Exam Jobs etc. for Provides real or authentic news. also Original content may not have been modified or edited by nixatube team members.