Zee-Invesco spat: NCLT to hear matter again on Tuesday

Amid the ongoing spat with the board of Zee Entertainment Enterprises Ltd, Invesco on Monday urged the National Company Law Tribunal (NCLT) to pass an order to ensure the convening of the company's Extraordinary General Meeting (EGM).

After hearing the matter for some time on Monday, the tribunal adjourned the proceedings for Tuesday.

Invesco's counsel Mukul Rohatgi told the NCLT that it was "mandatory duty" of Zee Entertainment Enterprises Ltd (ZEEL) to honour the EGM requisition as Invesco has 18 per cent shareholding in the company and as per law, a minimum of 10 cent shareholding is needed to request for convening an EGM.

He further argued that, otherwise, Zee will create hindrances if funds call for EGM independently and also requested for appointment of a retired High Court judge to chair the EGM.

The matter has been adjourned for further hearing on October 5.

US-based Invesco had moved a petition seeking convening of the EGM, removing the company's Chief Executive and Managing Director Punit Goenka as well as two other directors, and reconstituting the board with the appointment of six new directors.

Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) along with OFI Global China Fund LLC hold a 17.88 per cent stake in ZEEL.

On September 30, NCLT directed Zee Entertainment Enterprises Ltd to hold a board meeting to consider Invesco's request for convening an EGM.

However, on October 1, ZEEL told the exchanges that its board found the demand for a meeting seeking a recast of the board, including the removal of Goenka, to be illegal and invalid".

On October 2, ZEEL said it has moved the Bombay High Court against the requisition of minority shareholders, Invesco and OFI Global China Fund, to convene an EGM to discuss various issues, including removal of Managing Director Punit Goenka.