ZEEL Gets Breather From Bombay HC; Grants Injunction Against Invesco's Call For EGM

Invesco and OFI Global China Fund LLC, which together own 17.88% of the ZEEL, are at odds with the present board of directors and Managing Director and Chief Executive Officer Punit Goenka.

Logo of Zee | File Image

Mumbai: In a significant relief to Zee Entertainment Enterprises Limited (ZEEL), the Bombay High Court on Tuesday granted an injunction barring Invesco from acting on its notice of requisition for an extraordinary general meeting (EGM), noting that a firm must sometimes be saved from its own shareholders, no matter how well-intentioned they are.

Invesco and OFI Global China Fund LLC, which together own 17.88% of the ZEEL, are at odds with the present board of directors and Managing Director and Chief Executive Officer Punit Goenka.

The two funds are seeking to oust Goenka and appoint six new independent directors. ZEEL management has alleged that the funds are front for a corporate lobby, which wanted to buy ZEEL.

ALSO ON ABP LIVE: Elon Musk’s Tesla Becomes Sixth Company Of The World To Cross $1 Trillion Valuation Mark

"There will be an injunction in terms of prayer clause (a) of the Interim Application, restraining Defendants Nos. 1 and 2 (including their employees, agents and anyone acting by, through or under them) from taking any action or step in furtherance of the Requisition Notice dated September 11, 2021, including calling and holding an EGM under Section 100(4) of the Companies Act, 2013," said Justice G S Patel in his order.

The court said that if a shareholder resolution is bound to cause a corporate enterprise to run aground on the always treacherous shoals of statutory compliance, there is no conceivable or logical reason to allow such a resolution even to be considered.

When asked for comments, Ashish K Singh, Managing Partner of law firm Capstone Legal told ABP News, "The High Court has relied its decision on the mandatory requirement of prior approval of change of Directors from Ministry of Information and Broadcasting. The Court is of the prima facie view that Invesco's requisition notice is faulty. However, a final judgment will be passed after the recording of evidence."

Meanwhile, ZEEL has canceled its board meeting scheduled for October 27 to consider the second quarter's financial results.

The meeting was canceled due to lack of quorum, and a new date would be announced in a fresh notice, the company said in filings to the exchanges.

 

ZEEL and Sony Pictures Networks India are racing against time to complete the due diligence process for the proposed merger by the end of November, three weeks ahead of the 90-day deadline set by the two broadcasters.