The Bombay High Court, last Thursday, suggested Zee Entertainment Enterprises Ltd (ZEEL) call an extraordinary general meeting (EGM). That was a requisition from the shareholders of Invesco Developing Marketing Funds and OFI Global China Fund.
However, the court said that, until the legality and validity of the EGM requisition get decided, the EGM resolution will be under suspension.
What is this case?
Invesco attempted to force ZEEL into a deal with the Reliance Group. Zee turned that down because Reliance’s entities, which were to merge with Zee, was detailed an inflated valuation of a minimum of Rs 10,000 crores.
Invesco requests for six new directors
Invesco called for the EGM to impose the dismissal of directors, Manish Chokhani and Ashok Kurien, except the MD and CEO.
However, Chokhani and Kurien resigned from their posts already, and hence made the resolution moved by Invesco pointless.
Along with that, Invesco requested the appointment of six new directors: Naina Krishna Murthy, Aruna Sharma, Gaurav Mehta, Surendra Singh Sirohi, Srinivasa Rao Addepalli, and Rohan Dhamija.
What happened?
It is a significant decision for ZEEL in the matter of Invesco attempting to illegally take authority over ZEEL. On Tuesday, after a crucial development, the Bombay High Court kept Invesco in abeyance from calling EGM.
Earlier, Reliance Industries Limited, in its media statement, affirmed their proposal for the merger of its media properties with ZEEL and requested Punit Goenka to resume as Managing Director and CEO of ZEEL.
Hours after this, Goenka released a statement that said silence could be the best answer at times, but he realized that in particular circumstances, it is better to speak at the right time so that the truth will be revealed.
He continued to state that he was compelled to break his silence on the matter because he has always been very transparent in all his communications. He also wishes this be the first and last communication on this matter because he wants to focus on their value-creation journey at ZEEL.
He also lamented about the strong relationship ZEEL had with Invesco for the most part but, it pains him to see this relationship going sour and the unexpected consequences they are encountering.
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