Zee Entertainment Enterprises rejects Invesco’s demand to hold EGM, calls requisition illegal

New Delhi, Oct 3 (Agency) The tussle between Zee Entertainment Enterprises and its shareholders Invesco Developing Markets Funds and OFI Global China Fund shows no sign of abating. Zee Entertainment Enterprises on Friday rejected the two of its shareholders’ demand to hold an extraordinary general meeting. The rejection of the demand has come days after Invesco petitioned National Company Law Tribunal (NCLT) seeking an order to the company holding the EGM. The Zee Entertainment Enterprises Board in its meeting held on Friday termed the requisition as invalid and illegal, rejecting the EGM call. “The Board, comprising of experienced professionals deliberated and discussed various legal and statutory implications of the requisition notice. The Board sought the opinions of independent counsel, legal experts including senior retired Supreme Court judges and evaluated the matter in a fair and transparent manner.

In its meeting held on 1st October 2021, the Board has arrived at a conclusion that the requisition is invalid and illegal; and has accordingly conveyed its inability to convene the Extraordinary General Meeting to Invesco Developing Markets Funds and OFI Global China Fund, LLC,’ said Zee Entertainment Enterprises in a statement. ‘The Board has arrived at this decision by referring to various non-compliances under multiple laws, including the Securities and Exchange Board of India guidelines, Ministry of Information and Broadcasting guidelines and key clauses under the Companies Act and Competition Act and after taking into account the interests of all the shareholders and stakeholders of the company,’ it further said. Escalating fight against Zee Entertainment Enterprises Ltd (ZEEL) and its CEO Punit Goenka, shareholders Invesco Developing Markets Fund and OFI Global China Fund had filed a petition in National Company Law Tribunal (NCLT) seeking an order for extraordinary general meeting (EGM) of the company. Invesco Developing Markets Fund and OFI Global China Fund have been insisting on calling the EGM and had written to the company board on the same. Zee Entertainment Enterprises had termed Invesco and OFI Global China Fund’s move to take the issue to the NCLT as premature. The development had come close on the heels of the ZEEL board announcing that it had signed a non-binding merger agreement with Sony Pictures Networks India.