The National Company Law Tribunal ie NCLT has given a big blow to Zee Entertainment. The Mumbai Bench of NCLT has said that the company should consider the demand of Invesco Developing Markets Fund and OFI Global China Fund LLC and prepare to call the EGM. Invesco Developing Markets Fund and OFI Global China Fund LLC hold 18 per cent stake in Zee Entertainment. Invesco had demanded to convene an EGM of the shareholders to remove the director of zee Entertainment, Punit Goenka. But before that Zee Entertainment announced the merger with Sony Pictures Network.
NCLT said Zee should follow company law
NCLT’s bench of Bhaskar P. Mohan and Chandrabhan Singh said that Zee Entertainment should comply with section 100 of the Companies Act. Under this, the board will have to convene an EGM at the behest of the shareholders who have 10 percent stake in the company. The next hearing of the case will be on October 4. However, the counsel for zee Entertainment said that the meeting of the independent directors of the company is being held on Thursday and after that the board will decide to convene the EGM. According to the Companies Act, the company has to convene an EGM within 21 days from the date of receipt of the demand of the shareholders.
Invesco retaliates, sues NCLT for removal of Zee Entertainment director Puneet Goenka
This bet may also backfire for Invesco
If zee fails to announce the date for the EGM by this weekend, then Invesco can announce the date for it next week. In the EGM, Invesco may ask shareholders to vote in favor of the removal of Puneet Goenka and appoint six independent directors to the board of zee.
Some experts say that zee still has time to call the EGM. In such a situation, it is not understood why Invesco took this matter to the Company Law Tribunal. He says that this matter may backfire for Invesco. If the matter is not decided by the Tribunal on Thursday, then zee can say that she was ready to call the EGM. Invesco itself took the matter to NCLT.
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