Invesco moves NCLT after Zee doesn’t heed EGM call

MUMBAI: Invesco Creating Markets Fund together with OFI World China Fund LLC, each overseas funds, on Wednesday approached the Nationwide Firm Regulation Tribunal (NCLT) towards Zee Leisure for failing to announce a date for the extraordinary common assembly (EGM) to take away Zee’s chief govt and managing director Punit Goenka and reconstituting the board.
Invesco senior counsel Vikram Nankani, with advocate Gaurav Mehta, talked about the matter for an pressing listening to and the Mumbai bench of the NCLT has scheduled it for Thursday. For Zee, senior counsel Navroze Seervai and Sudipto Sarkar opposed the transfer, saying there was no urgency for 21 days.
Invesco, which has its registered workplace in Houston, Texas, US, and OFI World are shareholders of Zee Leisure representing virtually 18% paid-up share capital of the corporate with voting rights, making it Zee’s largest shareholder. They stated that the EGM has not been referred to as for regardless of a legitimate requisition by them on September 11.

They’re looking for to invoke the powers of the NCLT underneath the Firms Act to convene an EGM of the shareholders of Zee. The requisition by the 2 shareholders sought additionally the appointment of six impartial administrators on the Zee board.
A Zee spokesperson stated, “The board of the corporate stays dedicated to behave throughout the framework of regulation and is targeted in the direction of enhancing the corporate’s development and shareholder worth. It’s within the technique of taking the required steps throughout the statutory interval. The corporate doesn’t want to touch upon any impulsive or untimely steps taken by Invesco Creating Markets Funds and OFI World China Fund, LLC.”
On September 13, Zee Leisure had disclosed to the inventory exchanges that it had acquired the resignation of two non-independent administrators — Manish Chokhani and Ashok Kurien. Pointing this out, the appliance earlier than NCLT added that there has since been a “stoic silence” on their requisition.
On September 22, Zee introduced approval and execution of a non-binding time period sheet with Sony Footage (Sony India) for a possible merger. Non-calling of an EGM constitutes an “oppressive act” and is “gross mismanagement” of the corporate’s affairs, the appliance stated. It added that the choice on future governance and board composition of the corporate rests with its shareholders and never its board.
The candidates stated they apprehend that, earlier than the EGM, as requisitions, Zee might take varied steps to render the method infructuous, including that there’s a massive physique of public shareholders of the corporate and public curiosity concerned.