Zee Entertainment extends fall on resignation of independent directors

independent directors Neharika Vohra and Sunil Sharma stepped down on November 22 and November 24, respectively, the company said

Shares of Zee Entertainment Enterprises (Zee) slumped 5 per cent to Rs 302 on the BSE on Thursday after the media company said its three directors had resigned from its board, two of whom cited related-party transactions, among other reasons, for quitting.

The company, on Wednesday, said that independent directors Neharika Vohra and Sunil Sharma had stepped down on November 22 and November 24, respectively. Non-independent director Subodh Kumar had also resigned, Zee said, on the same day that Vohra stepped down. Zee said the disclosures were part of its corporate governance policy.

Kumar and Vohra had said that Zee failed to take action against Dish TV and Siti Cable for outstanding amounts they owed to the company as well as for lack of clarity on how corporate social responsibility (CSR) amounts were spent by the company.

With today’s fall, the share price of Zee has declined 16 per cent in the past four trading days after founder Subhash Chandra stepped down as chairman of the board.

Prior to that, the stock had rallied 25 per cent in three trading days, after Zee on November 20, announced a promoter stake sale of 16 per cent stake in the company to a number of investors at Rs 304 per share.

At 02:55 pm, the stock was trading 4 per cent lower at Rs 307 on the BSE, as compared to 0.07 per cent rise in the S&P BSE Sensex. A combined 48 million shares changed hands on the counter on the NSE and BSE.