Industry

NCLT directs Zee Entertainment to file reply to Invesco plea by October 22

Zee Chairman Emeritus Subhash Chandra asked minority shareholder Invesco to make an open offer and take over the company if it wants, saying the investment firm was acting in a clandestine manner   | Photo Credit: Reuters

The National Company Law Tribunal (NCLT) on Friday gave Zee Entertainment Enterprises Ltd time till October 22 to file its reply to a plea by its minority shareholder Invesco, after appellate body NCLAT ordered the tribunal to give the media major reasonable opportunity to do the same.

The Mumbai bench of NCLT, comprising Bhaskara Pantula Mohan and Narendra Kumar Bhola, directed Zee Entertainment Enterprises (ZEEL) to file its reply by October 22 for further consideration.

The NCLAT had on Thursday directed NCLT Mumbai to give reasonable opportunity to the media major to reply to Invesco's plea for holding a meeting of shareholders, and also remarked that the tribunal made an "error" by not providing sufficient response time.

While the NCLT is hearing a petition filed by Invesco demanding convening of an extraordinary general meeting (EGM), Zee had approached the NCLAT seeking more time to reply to the petition.

The US-based investment firm had on September 30 moved a petition seeking convening of EGM, removing the company's Chief Executive and Managing Director Punit Goenka as well as two other directors, and reconstituting the board with the appointment of six new directors.

Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) along with OFI Global China Fund LLC hold 17.88% stake in ZEEL.

NCLT had directed ZEEL to hold a board meeting to consider Invesco's request for convening an EGM.

However, on October 1, ZEEL told the exchanges that its board found the demand for a meeting seeking a recast of the board, including the removal of Mr Goenka, to be "illegal and invalid".

On October 2, ZEEL said it has moved the Bombay High Court against the requisition of minority shareholders Invesco and OFI Global China Fund, to convene an EGM to discuss various issues, including removal of Managing Director Punit Goenka.


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Printable version | Nov 30, 2021 7:34:47 AM | https://www.thehindu.com/business/Industry/nclt-directs-zee-entertainment-to-file-reply-to-invesco-plea-by-october-22/article36896035.ece

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