Subhash Chandra resigned as Chairman of the Zee Entertainment Enterprises' board with immediate effect and will continue as non-executive director.
"In light of the changes in shareholding, Mr. Subhash Chandra has expressed his intention to resign as Chairman of the Board with immediate effect. The Board accepted his resignation and noted that this is in line with the requirements of Regulation 17 (lB) of SEBI Listing Regulations, which inter alia mandates that the Chairperson of the Board shall not be related to the Managing Director or the Chief Executive Officer of the Company," the company said in its stock market filing.
Zee board appointed six independent directors, all the appointments will have to be approved by the shareholders. Subhash Chandra and Punit Goenka will continue on Zee Board as Essel Group representatives. Goenka, Subhash Chandra's son, is the current MD and CEO of the company.
The Subhash Chandra-led cash-starved Essel Group on 20 November said it is planning to sell 16.5 per cent stake in its flagship ZEEL to financial creditors to meet its loan repayment obligations.
In September, the group had sold 11 per cent stake in ZEEL to Invesco-Oppenheimer fund for over ₹4,224 crore and then retired debt worth ₹4,000 crore.