ZEEL-Invesco case: Bombay High Court to pass final orders today once Zee files its reply with EGM date; media reports jump the gun
Counsel appearing for Zee Entertainment said that the company will inform the date of the EGM by tomorrow morning, i.e. October 22. As they will never go against the law and the orders of the honorable court.
In a major development in the matter wherein Invesco was illegally trying to takeover ZEEL, the Bombay High Court on October 21 asked Zee Entertainment Enterprises Ltd to call an extraordinary general meeting (EGM) as requisitioned by shareholders Invesco Developing Market Funds and OFI Global China Fund.
However, the court added that the EGM resolution has to be kept in abeyance till it decides on the legality and validity of EGM requisition.
Meanwhile, jumping the gun, certain media reports claim that court (Bombay High Court) agreed and announced the decision in favour of Invesco. But in reality, the EGM will be chaired by a retired judge, the court also mentioned, that the resolution will be subject to the approval from the Ministry Of Information & Broadcasting.
Counsel appearing for Zee Entertainment said that the company will inform the date of the EGM by tomorrow morning, i.e. October 22. As they will never go against the law and the orders of the honorable court.
Certain media reports announcing this as a victory for Invesco as ZEEL has agreed to their demands are fake and biased towards one party.
What does the Bombay HC order say?
It is important to know that as per the orders of Bombay High Court ZEEL will have to host an EGM with a neutral person as chairman in the meeting.
Post EGM, ZEEL can challange the outcome and court will decide on merits, if persons can be appointed in board without MIB approval and jurisdiction issues.
Court will pass final orders today - 22nd Oct - once ZEE replies with the EGM Date and other details.
ZEEL-Invesco matter
Invesco had tried to force ZEEL into a deal with Reliance group. Zee had refused the deal because the group's entities, which were to be merged with Zee, was given an inflated valuation by at least Rs 10,000 crore.
Invesco had called for the EGM to push for the ouster of directors Ashok Kurien and Manish Chokhani, apart from MD and CEO Punit Goenka. However, Kurien and Chokhani have already resigned from their posts, thereby, making the resolution moved by Invesco "infructuous".
Moreover, Invesco sought the appointment of six new directors - Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli, and Gaurav Mehta.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.