Invesco moves NCLT over extraordinary general meeting of ZEEL

Invesco Developing Markets Fund formerly Invesco Oppenheimer Developing Markets Fund along with OFI Global China Fund LLC -- which together hold 17.88 per cent in ZEEL -- had earlier called for an extraordinary general meeting of shareholders seeking the removal of Managing Director Punit Goenka.

Invesco Developing Markets Fund along with OFI Global China Fund have moved the National Company Law Tribunal against media major Zee Entertainment Enterprises Ltd (ZEEL) for not calling an extraordinary general meeting of the company. Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) along with OFI Global China Fund LLC -- which together hold 17.88 per cent in ZEEL -- had earlier called for an extraordinary general meeting of shareholders seeking the removal of Managing Director Punit Goenka. Confirming the development, an Invesco spokesperson in an e-mailed statement told PTI that ZEEL's failure to call an EGM has prompted the company to approach the NCLT.

''The Company's (ZEEL) failure to take steps within its notice period to call an EGM, coupled with its delay in noticing our EGM on September 11th and failure to notice our September 23rd letter to the Exchanges, has prompted us to file a petition before the NCLT to enforce our rights as shareholders to call for this EGM of the company,'' the spokesperson said.

Invesco deeply admires and respects the shareholder safeguards embedded in India's corporate legal framework, he said.

''Our latest petition before the NCLT is intended to ensure that these safeguards are upheld so as to give shareholders of Zee a voice in choosing the governing board that will take Zee into a brighter future,'' the spokesperson added. ZEEL, which had last week announced its merger with rival Sony Pictures Networks India to create the largest media firm in the country, termed the steps by its minority shareholders as ''impulsive or premature''.

The matter is listed before the Mumbai bench of the NCLT for hearing on Thursday, industry insiders said. ZEEL declined to comment on the development and said it remains committed to acting within the framework of the law. ''The Board of the Company remains committed to act within the framework of law and is focused towards enhancing the Company''s growth and shareholder value. It is in the process of taking the required steps within the statutory period,'' said a ZEEL spokesperson. The company does not wish to comment on any impulsive or premature steps taken by Invesco Developing Markets Funds and OFI Global China Fund, LLC, he further said. Earlier this month, the two investment firms had called an extraordinary general meeting of shareholders seeking to remove Punit Goenka along with two other independent directors -- Manish Chokhani and Ashok Kurien, both of whom resigned later. The investment firm has also sought the appointment of six of its own nominees on the board of the company -- Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta. Goenka is the son of ZEE founder and Essel Group chairman Subhash Chandra. Essel Group currently owns 4 per cent stake in the company.

On September 22, ZEEL and Sony Pictures Networks India (SPNI) had announced their merger, which will create the country''s largest media company. The merged entity, in which SPNI's parent company Sony Pictures Entertainment would infuse USD 1.575 billion, will be a publicly listed company in India. Moreover, the move will also provide a lifeline to ZEEL Managing Director and Chief Executive Officer Punit Goenka.