Punit Goenka’s Reappointment As ZEEL Director Rejected By Shareholders

Earlier this month, Goenka resigned from his position as managing director of ZEEL but remained CEO. He also withdrew his candidacy for reappointment as managing director in the AGM

Earlier, several proxy firms had recommended shareholders vote against Goenka’s reappointment

Source : X

Zee Entertainment’s shareholders have rejected a proposal for the reappointment of Punit Goenka as a director, according to a regulatory filing. The resolution was voted down during the 42nd Annual General Meeting (AGM) held on Thursday, as stated by Zee Entertainment Enterprises Ltd (ZEEL).

The proposal for Goenka's reappointment as Director received only 49.54 per cent of the total votes cast, while 50.4 per cent of votes were against it.

"Resolution No. 3 (Goenka's reappointment) failed to get the requisite majority of votes as required under the provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," ZEEL said.

The Companies Act, 2013, requires a simple majority (50 per cent plus one) of votes for the approval of an ordinary resolution at an AGM. This marks a significant setback for Goenka, who currently serves as CEO of the company.

Earlier, several proxy firms had recommended shareholders vote against Goenka’s reappointment.

However, the three other resolutions—adopting the financial statement for FY’24, declaring a dividend, and ratifying remuneration to cost auditors—were passed.

Earlier this month, Goenka resigned from his position as managing director of ZEEL but remained CEO. He also withdrew his candidacy for reappointment as managing director in the AGM.

In a filing last week, Zee Entertainment stated that Goenka "withdrawing his consent for his re-appointment as managing director of the company as proposed in the notice of the ensuing annual general meeting."

On October 18, the ZEEL board approved a proposal for Goenka’s reappointment for a five-year term, effective January 1, 2025, to December 31, 2029. His tenure as Managing Director and CEO was set to end by the close of 2024.

Later, in another regulatory filing, ZEEL mentioned that it had revised the performance targets for Goenka as part of his reappointment.

Additionally, ZEEL’s board approved the appointment of Saurav Adhikari as an additional non-executive director, effective November 29, subject to shareholder approval.