In a setback to Subhash Chandra and his family, shareholders of Zee Entertainment Enterprises Ltd. rejected a Rs. 2,237-crore capital infusion proposal, thereby thwarting the founding clan’s attempt to increase ownership from 4% in the broadcaster to 18%. The development restricts the family from wielding greater influence over the company where public shareholders have been repeatedly defeating key management resolutions.
The special resolution failed to secure the required 75% shareholder approval. Only 60% votes were cast in favour of issuing convertible warrants worth Rs. 2,237 crore to its promoters.
The development comes after Zee shareholders in November last year rejected CEO and Subhash Chandra’s son, Punit Goenka’s board reappointment. About 50% of the shareholders had opposed retaining Punit as a director on the company’s board.