Zee, Invesco battle to test Competition law on wresting corporate control

Zee says Invesco did not seek CCI approval for naming six nominee directors on its board; lawyers say consent not required for less than 10% stake acquisition

The corporate battle between Oppenheimer-backed Invesco Fund and the board of Zee Entertainment Enterprises will test the Competition law, which says the Competition Commission of India’s (CCI) approval is required if it leads to wrest control of the target company.

Invesco has not yet taken CCI’s approval for appointing six of its nominee directors on the Zee board. In the absence of CCI approval, Invesco is in violation of the Competition Act, 2002, according to Zee officials.

Invesco holds an 18 per cent stake in Zee Entertainment Enterprises and is litigating with Zee over the board’s decision to reject an extraordinary general