Bombay HC asks Zee to call the EGM as requisitioned by Invesco

In a setback for Zee Entertainment Enterprises, Bombay High Court on Thursday asked the company to call an EGM as requisitioned Zee's largest shareholder Invesco. The bench suggested a neutral chairperson, including anyone from the corporate world, lawyer or retired judge should head the meeting. 

Zee said it will inform the court of the EGM date by Friday morning.

Zee Entertainment agreed to call EGM only if its right to contest validity of resolution is reserved.

Any resolution passed at the extraordinary general meeting will be put on hold until the Bombay High Court decides on the legality of the Invesco's request for such a meeting 

Invesco along with OFI Global China Fund LLC hold a 17.88 per cent stake in Zee Entertainment Enterprises Ltd (ZEEL) and have been pressing for an Extraordinary General Meeting (EGM) to discuss various issues, including the removal of Goenka and appointment of its nominees on the company's board.

According to Goenka, the fight with Invesco is to ensure ZEEL continues to gain immense growth opportunities and become a stronger and more formidable player in the media and entertainment sector.

Goenka stressed that he would not let anyone impact the future of ZEEL or diminish the shareholder value it has been consistently generating over the years.

Zee's founder and Goenka's father Subhash Chandra has accused Invesco of plotting a hostile takeover. Invesco has denied the charge but said that earlier this year it tried to forge a deal between companies owned by Reliance Industries, controlled by billionaire tycoon Mukesh Ambani, and Zee.

"In my view, we should not belittle this dispute as a dispute for control by Invesco," said Mohit Saraf the founder of Saraf & Partners law firm, which is not involved in the case, told Reuters.

"This dispute will set the litmus test for enforceability of shareholding rights in this country."