The Bombay High Court has granted an interim injunction against Invesco, the largest shareholder of Zee Entertainment Enterprise Limited (ZEEL); it has restrained Invesco from calling an EGM to seek ZEEL MD & CEO Punit Goenka’s removal. The injunction was granted by a single bench presided over by Justice Gautam Patel. The complete order is awaited.
A ZEEL Company Spokesperson, said, “The decision taken by the Hon’ble Bombay High Court is a huge win for all the stakeholders of the Company.”
Zee had requested an injunction to prevent Invesco from taking any action or procedures in response to its demand notice, including calling and convening an EGM.
On October 22, the court had deferred its decision after Zee contended that the EGM call by its major shareholders, Invesco and OFI Global, was illegitimate and unlawful.
Invesco meant to remove ZEEL MD & CEO Punit Goenka from the helm and replace him with six independent directors. ZEEL counsel Gopal Subramaniam had said that a listed company’s board of directors requires an optimal balance of executive and non-executive directors, and the adjustment that Invesco sought to implement would undermine that goal. Zee had further stated that any such modification would require prior approval from the Ministry of Information and Broadcasting.
