Invesco, the largest shareholder in Zee Entertainment Enterprises Ltd., has decided to withdraw its request for a shareholders’ meeting to remove Managing Director Punit Goenka. The move comes despite it winning a court battle for the same. The change of heart is because Invesco feels that its goal of strengthening the Board of Directors would be achieved once Zee merges with Sony Pictures Networks India.
It may be recalled that Invesco had alleged corporate governance lapses in September last year and had, therefore, sought an extraordinary general meeting (EGM) to oust Punit and to induct six new independent directors in the company. Around the same time, Zee had announced that it was in talks with Sony for a possible merger.