Will take necessary action as per law, says ZEEL on shareholders' board reshuffle demand

Goenka's appointment as MD and CEO is one of the conditions for the merger deal, announced last week, between the two companies

e4m by exchange4media Staff
Updated: Sep 28, 2021 9:23 AM
Punit Goenka

After ZEEL's two largest shareholders, Invesco Developing Markets Fund and OFI Global China Fund LLC, which together hold 17.88% stake in ZEEL, demanded to oust MD & CEO Punit Goenka from the company, ZEEL said that it will take the necessary action as per applicable law, according to the reports.

The company did not elaborate further on the matter. “The Board is seized of the matter. The Company will take necessary action as per applicable law,” a ZEEL spokesperson said.

The two investors had earlier this month sought an extraordinary general meeting to remove Goenka and two independent directors Manish Chokhani and Ashok Kurien, who had subsequently resigned from the board.

Apart from seeking Punit's ouster, Invesco has also proposed the names of six independent directors - Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta.

Earlier, it also said that the EGM has been requisitioned to protect shareholder value and in exercise of our statutory rights as an ordinary shareholder. “We have called upon the Company to hold an EGM, and it is your duty under company law to now do so. At this EGM, shareholders of the Company will decide the composition of the Company’s board of directors in a free and democratic manner.”

Last week, ZEEL had announced a merger plan with Sony Pictures Network India (SPNI), under which the latter will hold a 52.93 per cent stake in the merged entity and Zee the remaining 47.07 per cent. As per the ZEE-Sony deal, Goenka would have remained at the helm of the combined entity as MD and CEO. In fact, Goenka's appointment as MD and CEO is one of the conditions for the merger deal between the two companies.

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