Zee board rejected the request of major stakeholders, Invesco and OFI Global China Fund to arrange for an EGM. The Extraordinary General Meeting(EGM) was requested by the two stakeholders to discuss the discontinuance of Punit Goenka as the MD. The Zee board on Friday, 1st October 2021, rejected the plea of the major shareholders. The requisition was termed as “invalid and illegal”.
“In its meeting held yesterday, the board has arrived at the conclusion that the requisition is invalid and illegal. And has accordingly conveyed its inability to convene the Extraordinary General Meeting to Invesco Developing Markets Funds and OFI Global China Fund,” ZEEL said in a statement. Invesco Developing Markets Funds and OFI hold 18% stakes in the company.
Zee-Sony merger. Invesco’s request to the board and The rise and fall of ZEEL’s stocks:
The Zee Entertainment Enterprises Ltd announced a merger with Sony on September 22nd. Sony India acquired 51% stakes in Zee and the rest 49% will be disbursed amongst the existing shareholders on pro-rata basis. ZEEL’s share price shot up after the merger. Shortly afterwards, Invesco requested an EGM to discuss the removal of Goenka. Invesco also asked for the reconstitution of the board by appointing six new directors and getting rid of the current two. Invesco sought the appointment of six of its own nominees on the board of the company. The nominees are Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao and Gaurav Mehta.
Image Credits: Wikimedia Commons
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