NEW DELHI: Ending its resistance against shareholders demand for an extraordinary general meeting (EGM), Zee Entertainment Enterprises Ltd has agreed to consider convening the EGM after the Bombay High Court assured the media firm that it would be given time to contest the resolution, if passed.
The high court has asked both the parties to propose a date and a neutral chairperson to conduct the EGM. The court said the neutral person could be someone from the India Inc, a former judge or a lawyer. The court was hearing a petition filed by Zee against its largest shareholder Invesco Developing Markets Fund’s call for EGM. It sought the court to declare the requisition invalid. However, the single judge bench of GS Patel said the petition cannot be entertained purely on the assumption that the resolution put forward in the EGM would be passed and acted upon by the shareholders.
The court assured the petitioner that if at all the resolution is passed in favour of Invesco, it would be kept in abeyance and that Zee would be given time to contest the resolution. The court has asked the parties to propose the date of EGM by Friday, when the court again hears the case.
Invesco had first called for an EGM on September 11, which was ignored by the Zee board. That forced Invesco to move NCLT to enforce their rights as shareholders to call for the EGM of the company. The NCLT had ordered Zee Entertainment to convene the EGM as sought by the two shareholders — Invesco Developing Markets Fund and OFI Global China Fund LLC — who together hold 17.88% stake in the company. However, despite the NCLT order Zee had refused to convene the EGM terming the requisition (of EGM) as invalid and illegal.