Zee Entertainment Enterprises Ltd (ZEEL) on Wednesday moved the National Company Law Appellate Tribunal (NCLAT) to get a stay on the NCLT order that sought a reply from the company on its decision on holding an extraordinary general meeting (EGM) on a plea moved by shareholder Invesco Developing Market Funds.
On Tuesday, the NCLT had asked ZEEL to reply by October 7 on Invesco’s plea to get a legal order for the company to call an EGM to transact important business matters.
Invesco and another shareholder, OFI Global China Fund LLC, had moved the NCLT earlier seeking ZEEL board to call an EGM to discuss important corporate matters. But the ZEEL board rejected this call at its October 1 meeting, terming the requisition as invalid and illegal.
“The company has moved the National Company Law Appellate Tribunal (NCLAT) in accordance with the due process available under the law. The company has also filed a suit in the Bombay High Court to declare that the requisition notice sent by Invesco Developing Markets Fund and OFI Global China Fund LLC is invalid,” a ZEEL spokesperson said.
“The company continues to have full faith in the Indian judicial system and will take all the necessary steps that are in the best interest of all its shareholders,” the spokesperson added.
On Saturday, ZEEL had also moved the Bombay High Court against Invesco and OFI Global’s requisition for an EGM to discuss various issues, including the removal of Managing Director Punit Goenka.
The company’s plea before the court is to declare the call for EGM invalid after Invesco got the NCLT nod seeking a meeting by the ZEE board.
“The next date of hearing before the National Company Law Tribunal (NCLT) is Thursday (October 7). As per the decision taken by the board of the company, which was communicated on October 1, and as per their guidance, the company has already moved to the Bombay High Court to declare that the requisition notice sent by Invesco Developing Markets Fund and OFI Global China Fund LLC is invalid,” a ZEEL spokesperson had said earlier.
ZEEL is engaged in a boardroom brawl with the company’s two largest shareholders expressing non-confidence with the existing management and seeking an extraordinary general meeting to sack a few directors, including ZEEL MD and CEO Punit Goenka.
ZEEL also recently announced its merger with Sony Pictures, which further irked the shareholders who moved the NCLT to get their demand for EGM met.