The Bombay high court on October 26 gave Zee Entertainment Enterprises Ltd. a major relief in its feud with Invesco Developing Markets Fund, its largest shareholder, as it restrained the US fund from calling an extraordinary general meeting to oust Managing Director and CEO Punit Goenka. Invesco also wanted to induct several independent directors on the Zee Board.
Justice G.S. Patel said in his 44-page order that the nomination of identified individuals does not speak well of their “independence”. He also said that Punit’s removal from Zee will cause an immediate vacancy and non-compliance, which would be wrong. He further added that it was not clear how this could be done without the I & B ministry’s permission. Of course, Invesco has a right to appeal against the order in the high court itself or in the Supreme Court.
The high court had on October 21 suggested Zee to call the EGM as required by Invesco. The new order came after Zee’s lawyers argued that the company needed to maintain a balance between executive and independent directors on the Board.
Meanwhile, Zee cancelled its Board meeting of October 27 for considering its second quarter earnings, due to lack of quorum.