It is the "mandate of the law" that ZEEL should call the extraordinary general meeting (EGM) on Invesco's request: NCLT
According to media sources, the National Company Law Tribunal (NCLT) has ordered the Board of Zee Entertainment Enterprises Limited (ZEEL) to summon an extraordinary general meeting (EGM) in response to shareholder Invesco Developing Market Funds' request.
On Wednesday, the NCLT noted this while hearing Invesco's petition. Two of ZEE's major investors, Invesco and OFI Global China Fund LLC, have requested an EGM to remove the company's chief executive and managing director, Punit Goenka, and reassemble the board.
Invesco, along with its subsidiary OFI Global China Fund LLC, holds a 17.88 per cent stake in Zee.
According to reports, NCLT, while hearing Invesco's plea, observed that it is the "mandate of the law" that Zee should call for the EGM. It is not a discretionary power of the board to call or not call for EGM, the tribunal added.
The NCLT reportedly said the board of ZEEL must "comply with Section 100 of the Companies Act". "No power vested with the board to deny EGM," it reiterated.
According to Section 100 of Companies Act, 2013, listed companies are supposed to announce a date for an EGM within three weeks of receiving such a request from an investor holding at least 10 percent shares.
NCLT will hear the case next on October 4.
Meanwhile, issuing a statement after the tribunal hearing, Zee said, “The Board of the company is scheduled to meet as per the statutory time allotted, in relation to the matter. The company will continue to take all the actions needed in the interest of the shareholders and as per law.”
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