Bombay HC allows injunction against Invesco’s EGM call

In a fresh development in the Zee Entertainment-Invesco imbroglio, the Bombay High Court today allowed an injunction against calling an extra ordinary general meeting (EGM) at the behest of Invesco.

On Friday, ZEE argued against allowing the EGM by the biggest shareholders Invesco and OFI Global. The broadcaster contended that it was invalid and illegal.

Gopal Subramanium, representing Zee Entertainment, argued that there has to be an optimum balance between executive and non-executive directors in the board of any listed company. Invesco’s bid in this regard run contrary to that purpose. Also, permission from the Ministry of Information & Broadcasting is needed to make such changes.

Punit Goenka, who was represented by Kapil Sibal, argued that if Goenka is ousted, the company will be devoid of an MD and CEO, without whom the company won’t be able to function.

Invesco’s lawyer Janak Dwarkadas argued that Invesco has a statutory right to call for an EGM as it can satisfy the necessary procedural as well as numerical requirement (17.88% stake held by Invesco and OFI Global combined).

Dwarkadas informed that Invesco has approached the National Company Law Tribunal (NCLT) in this regard.

ZEE has welcomed the court decision. "The decision taken by the Bombay High Court is a huge win for all the stakeholders of the company,” said a ZEE spokesperson.