Invesco withdraws EGM requisition notice for ZEE’s board reconstitution

Zee Entertainment's largest shareholder Invesco on Thursday welcomed the Bombay High Court's order against Zee as ‘an important reaffirmation of shareholder rights’. In a statement, Invesco announced that it has decided to withdraw its requisition notice that sought the removal of MD and CEO Punit Goenka from the board of ZEE.

Invesco also reiterated its support for the proposed merger of ZEE with Sony .

“We continue to believe this deal in its current form has great potential for Zee shareholders,” the company said. “We also recognise that, following the merger’s consummation, the board of the newly combined company will be substantially reconstituted, which will achieve our object.

“Invesco will continue to monitor the proposed merger's progress. If the merger is not completed as currently proposed, Invesco retains the right to requisition a fresh EGM,” it further added. 

The Bombay High Court on Tuesday had allowed an appeal filed by Invesco against a single-judge order granting interim injunction on holding an EGM. A division bench of Justices S J Kathawalla and Milind Jadhav quashed and set aside the single bench order of October 2021. "The appeal is allowed. The single bench order is quashed and set aside. We have held that the requisition notice (sent by Invesco to Zee) is neither illegal nor incapable of being set aside," the court said.

In September 2021, Invesco had put out a requisition to the Zee Board of Directors to hold an extraordinary general meeting (EGM) on the grounds that it felt the company was not running as smoothly as desired. 

The firm sought to remove three directors from the Zee's Board, including Managing Director and Chief Executive Officer (CEO) Punit Goenka. 

When Zee refused to respond to the requisition, Invesco moved an application before the National Company Law Tribunal (NCLT) in Mumbai, which directed Zee to consider the requisition in accordance with law. 

Zee then approached the high court, seeking a declaration that the requisition notice by Invesco to hold the EGM was illegal and invalid. A single bench of Justice Gautam Patel had in October 2021 in an interim order granted an injunction against holding of the EGM.