Bombay High Court Bars Invesco From Calling Zee's Shareholders Meet

Bombay High Court has restrained Zee Entertainment's shareholder Invesco from holding an EGM

The Bombay High Court on Tuesday granted an interim injunction in opposition to Zee Entertainment Enterprise Limited's (ZEEL) largest shareholder Invesco, restraining the latter from going forward with the requisition of a unprecedented common assembly (EGM) looking for elimination of the ZEEL managing director and CEO Punit Goenka.

A single bench presided over by Justice Gautam Patel stated, “I've granted an injunction to the respondents."

A detailed order of the court is awaited.

The high court had reserved its order on the issue last week after ZEEL had told the court that it was not willing to hold an EGM of shareholders as requested by its largest shareholder, Invesco.

The submission was made in response to a previous suggestion made by the Bombay High Court whereby, Justice Patel had asked the ZEEL if it was willing to hold such a meeting.

Senior counsel Gopal Subramanium, who appeared for ZEEL, had told the high court at the time that the company's Board of Directors could not grant permission for something that could turn out to be “illegal."

Invesco Developing Markets Fund and OFI Global China Fund, the most important buyers of ZEEL, had despatched a requisition to the corporate on September 11 to name for an EGM for the elimination of Punit Goenka and two different non-independent and non-executive administrators from the corporate's board. It had additionally sought the induction of six new unbiased administrators.

ZEEL, nonetheless, moved the excessive court docket on October 2, looking for that the court docket declares the requisition discover for a shareholders assembly despatched by Invesco as unlawful and invalid.