New Delhi: Zee’s board on Friday rejected requests from two institutional investors for a shareholders’ meeting, setting the stage for a court battle that could affect the imminent merger with Sony Group Corp.
The Board’s decision has been held by the Companies Court of India that Zee should consider the requests of Invesco Developing Markets Fund and OFI Global China Fund LLC to hold an extraordinary general meeting.
Referring to the guidelines laid down by the capital of India, Zee in a regulatory filing said, “The board reached this decision citing various non-compliances under various laws and keeping in view the interests of all the shareholders and stakeholders of the company.” Is.” Ministry of Markets Regulatory and Broadcasting as well as Company Law.
Invesco and OFI Global, which hold 17.88% shares in Zee, had filed a petition with the National Company Law Tribunal (NCLT) earlier this week, following which Zee last week entered into a merger agreement with Sony Group Corp’s India unit. was signed. This move will make the country’s largest broadcaster.
A lawyer for Investo told the Mumbai bench of NCLT, “We feel that the company is not running as it should be run as per the directions or for the welfare of the shareholders. We are concerned that our investment will be curtailed.” on Thursday.
The next hearing in the matter will be on October 4. Zee Chief Executive Officer Punit Goenka will become the Managing Director and CEO of the merged entity as part of the deal.
Invesco and OFI Global had earlier this month asked Zee to remove Puneet Goenka and two directors from the board and appoint several independent directors.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)