Zee Entertainment Vs Invesco Row: The dispute between Zee Entertainment Enterprises Limited and the company’s largest shareholder Invesco Development Markets Fund has taken a new turn. In fact, the court allowed the appeal filed by Invesco challenging a single judge’s order granting interim stay on holding of Extraordinary General Meeting (EGM) for the removal of Zee Group CEO Officer Punit Goenka.
What did the court say: A division bench of Justice SJ Kathwala and Justice Milind Jadhav set aside the order of the single judge dated October 2021. The court said, “The appeal is allowed. The order of the single bench stands set aside.” Advocate Aspi Chinoy, appearing for G, requested the court to direct the status quo to be maintained in the matter. After which the court directed to maintain the status quo for three weeks.
Shares fall: Following this news, Zee Entertainment’s stock fell by more than 4 per cent. However, at the end of trading, the share price closed at 248.55 points, down 3.23 per cent. If we talk about the market capital, then it was Rs 23,873 crore.
What’s the matter: Let us tell you that in September 2021, Invesco sent a requisition to Zee’s board of directors to hold an extraordinary general meeting and said that it felt that the company was not running smoothly. The company sought the removal of three directors, including Goenka, from the board of Zee. But when Zee did not respond to this demand, Invesco applied to the National Company Law Tribunal (NCLT).
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Was asked to consider: NCLT asked G to consider this demand in accordance with law. G then approached the High Court requesting that Invesco’s notice regarding holding of EGM be declared illegal. Thereafter, a single bench of Justice Gautam Patel gave an interim order of stay against holding the EGM in October 2021. Against this order, Invesco filed this appeal.