The conflict between Zee Entertainment and the company’s minority shareholders Invesco and OFI Global China has now reached a new juncture. Zee Entertainment has moved the NCLAT (National Company Law Appellate Tribunal) against the NCLT’s decision to convene the EGM. The NCLT (National Company Law Tribunal) had said that Zee Entertainment should convene the EGM of the shareholders of the company. Invesco and OFI Global China Fund, which hold about 17.88 per cent stake in the company, had demanded an EGM to remove Zee Entertainment MD Puneet Goenka. NCLT had said that Zee should call the EGM.
Three legal battles between Zee Entertainment and Invesco
There will now be three legal battles between Zee and Invesco. The NCLT has asked Zee Entertainment to file a reply on the plea of Invesco and other minority shareholders by the next hearing on October 7. Zee has said in a regulatory filing that it has requested the Bombay High Court to declare the Requisition Notice sent by Invesco and OFI Global China Fund for convening the EGM as illegal and invalid. The Mumbai Bench of the NCLT, during the hearing on 30 September 2021, had asked Zee to consider Invesco’s demand for convening the EGM. But Zee Entertainment said that the demand for convening the EGM has been rejected in view of the non-compliance under different laws and in the interests of the shareholders and stakeholders of the company.
Zee Entertainment appeals against Invesco in Mumbai High Court, insists on not convening EGM
NCLT had said, Zee will have to respond soon
On Tuesday, the NCLT had said that the matter is straightforward. It is to decide whether the demand for EGM is valid or not. NCLT cannot give week-to-week time to Zee Entertainment to file its reply. However, the order will be given only after hearing the counter petition filed. In our view, minimum time should be given. The next hearing will be on Thursday.