Zee Entertainment Enterprise Ltd (ZEEL) has received a major setback from the National Company Law Tribunal (NCLT). The NCLT on Thursday said that the board of ZEEL will have to convene an Extraordinary General Meeting (EGM) as per the requirements of Invesco Developing Market Funds under the laws.
Invesco is the largest single shareholder of ZEEL. Invesco and OFI Global China Fund LLC together hold 17.88 per cent stake in ZEEL. Both the investors had moved the NCLT on September 29. Two weeks after this, both the investors had demanded to convene an EGM to demand the removal of three directors, including ZEEL’s MD and CEO Puneet Goenka, from the company’s board.
Whistleblower’s allegation – HDFC Bank does not report the fraud case, charges fees
The NCLT, while hearing the plea of Invesco, observed that ZEEL should convene the EGM as per the laws. The tribunal also said that the Board is not empowered to decide whether to convene the EGM or not.
The NCLT said that the board has no right to refuse to convene the EGM on the demand of the shareholders holding more than 10 per cent. Under Section 100 of the Companies Act 2013, listed companies are required to convene this meeting within three weeks of receiving an EGM request from shareholders holding more than 10% stake.
Sanjeev Bhasin of IIFL Securities said that these 3 stocks can earn good profits in the month of October
The NACLT said that ZEEL has to comply with the rules of section 100 and the board does not have the right to deny it. The NACLT has fixed October 4 for the next hearing of the matter.
Senior Advocate Mukul Rohatgi, appearing for Invesco, submitted that Invesco was compelled to file a petition before NSLT as 21 days have passed for seeking convening of EGM and ZEEL has not yet accepted their demand.
Foreign brokerage increased the target of these 6 stocks, do you have any of these
Rohgati said, “I am worried about the day-to-day functioning of the company (ZEE). We fear that our investments may sink. We have invested around Rs 5,000 crore in the company.” Referring to the merger between ZEEL and Sony, Invesco said it fears that the demand for EGM may be postponed until their stake is reduced due to the deal.
Facebook us for social media updates (https://www.facebook.com/moneycontrolhindi/) and Twitter (.) to follow.
.