Media house Zee Entertainment Enterprises has got relief from its largest shareholder Invesco. In fact, Invesco has dropped the demand for a change in the board of Zee Entertainment. Invesco said in a statement that we have decided to withdraw our demand notice. In this notice, there was a demand for the removal of MD and CEO Puneet Goenka from the board of Zee.
Along with this, Invesco has also supported the proposed merger of Zee with Sony. This news comes at a time when the Bombay High Court recently quashed the single judge’s decision on the appeal filed by Invesco.
What was the matter: In fact, the matter started in September 2021 when Invesco, the largest shareholder of Zee Entertainment, sought an extraordinary general meeting. Invesco alleged that Zee Entertainment was not running smoothly. Along with this, the company had also demanded removal of three directors, including CEO Puneet Goenka, from the board of directors of Zee.
If the reply was not received, then the NCLT reached: However, as Zee Entertainment did not respond to this demand, Invesco approached the National Company Law Tribunal (NCLT). NCLT asked Zee Entertainment to consider this demand in accordance with law.
G also moved the court: Taking a legal stand, Zee Entertainment also approached the Bombay High Court. Zee Entertainment had demanded that Invesco’s EGM notice be declared illegal. After this, a single bench of the Bombay High Court ruled in favor of Zee Entertainment. Against this decision, Invesco once again appealed to the Bombay High Court.
Verdict again in favor of Invesco: Recently, a division bench of High Court Justice SJ Kathwala and Justice Milind Jadhav ruled in favor of Invesco. Under this decision, the order of the Single Judge of October 2021 was set aside. With this, Invesco’s appeal was approved. Now with the changed stance of Invesco, Zee’s controversy seems to be ending.
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Share jumped: However, this news made the investors of Zee Entertainment go crazy and the company’s stock started running like a rocket. The share price of Zee Entertainment has crossed Rs 300 on the BSE index. The share price on the BSE index is above Rs 302. The stock has gained up to 19 per cent as compared to a day earlier.