The National Company Law Tribunal (NCLT) on Thursday directed Zee Entertainment Enterprises to hold a board meeting to consider Invesco’s request for convening an Extraordinary General Meeting (EGM). While hearing a plea by Invesco, a shareholder of Zee Entertainment, the tribunal also directed the company to communicate the board’s decisions appropriately to the shareholders.
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. Mukul Rohatgi, representing Invesco, told the tribunal that Zee Entertainment was not being run as it should be and that the new directors should be on the board to ensure the interest of the shareholders.
Invesco has also demanded removal of two other directors — Ashok Kurien and Manish Chokhani — apart from Goenka. According to Rohatgi, Invesco had requisitioned for EGM on September 11 and the communication was received by Zee Entertainment on September 12. He also urged the tribunal to direct the company to hold the EGM within 45 days.
The NCLT Mumbai bench, comprising Bhaskara Pantula Mohan and Chandra Bhan Singh, directed the Zee Entertainment’s board to hold a meeting to consider the request for the EGM. The tribunal will hear the matter next on October 4.