New Delhi: The companies’ court in India on Friday gave Zee Entertainment two weeks to file its reply on a matter brought by two institutional investors for a shareholders’ meeting to discuss overhaul of the top management and board of directors.
Invesco Developing Markets Fund and OFI Global China Fund LLC, which together account for 17.88% of its shares, want Zee to convene an extraordinary general meeting of shareholders ahead of the company’s planned merger with the local unit of Japan’s Sony Group Corp. .
A bench of the National Company Law Tribunal (NCLT) in the financial capital of Mumbai passed the order after Zee got relief from an appellate court that it should be given “reasonable time” to respond in the matter. The impending merger will create India’s largest broadcaster to be headed by Zee CEO Puneet Goenka whom Invesco and OFI are looking to oust
Funds also want the company’s board to be revamped. Earlier this month, Zee’s board rejected Invesco’s call for an EGM. Zee had earlier this week approached the higher National Company Law Appellate Tribunal (NCLT) seeking more time to respond. A complaint was lodged in the matter on October 7.
Zee will now file its reply before the NCLT on October 22. Invesco and OFI did not immediately respond to a request for comment.
Zee founder Subhash Chandra, who is also the father of the company’s CEO Goenka, earlier this week criticized Invesco for trying to effect a hostile takeover and urged the Indian government and regulators to intervene.
Chandra has no official position in Zee but his family owns 3.99% of the company. Veteran Bollywood actress and MP Hema Malini came out in support of Zee on Friday.
Malini tweeted, “India’s first pure entertainment channel is facing some trouble and needs the support of the government and public.
(This story has not been edited by NB staff and is auto-generated from a syndicated feed.)