Of the three board members of Zee Entertainment Enterprises Ltd. (ZEEL) who resigned recently, two had raised several concerns but the company said all those issues were discussed and acted upon.
While Sunil Sharma, an independent director, resigned on November 24, Subodh Kumar, a non-independent director, and Neharika Vohra, an independent director, resigned on November 22. In his resignation letter, Mr. Sharma had said that subsequent to sale of shares by the promoter group and reconstitution of the board, he had tendered his resignation. “The company, while accepting the resignations and intimating the exchanges about the same, discussed the same in detail in the board meeting held on November 25, 2019,” ZEEL said in a communication to the exchanges.
“The board of directors noted that all of the issues raised by the resigning directors have been duly discussed, deliberated and acted upon... in the previous committee / board meetings in which the said directors were also present,” it added.
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Some issues raised by Mr. Kumar and Ms. Vohra pertained to ₹2,200-crore of film advances extended in 2018-19, a scheduled bank appropriating ₹200 crore of the company’s fixed deposits towards promoter loans and the management not initiating legal action (on it), and non-implementation of certain decisions of the board meeting held on October 17, 2019 relating to treasury operations.
After Essel Group, sold 16% stake, ZEEL chairman Subash Chandra stepped down but remained as non-executive director.