Bombay High Court asks Zee to consider Invesco’s EGM request

The Bombay High Court has directed the board of Zee Entertainment Enterprises to consider the request from Invesco, its biggest shareholder, to hold an extraordinary general meeting (EGM).

The court directed both the parties to come up with a name and date an agreeable and neutral chairperson to hold the EGM.

If the EGM is convened and the resolution passed, it can be suspended for a week so that the company can take legal recourse if needed, the court ruled.

“Such neutral chairperson to conduct EGM can be someone from the corporate world, a former judge or a senior counsel... It is premature to assume that the resolution will be passed or not,” said the court. 

“The order that Zee seeks is in the teeth of a statutory provision (provisions of the Companies Act, 2013). I can’t see if the resolution is going to be passed and I don’t see why I should presume it will be passed. If the resolution is passed, the best we can do is ask that it should not be acted upon for a week,” said Justice GS Patel.

Gopal Subramanium, who was representing ZEE, informed that the court will be informed by Friday on the suggestion.

Senior advocate Kapil Sibal, who appeared for ZEE MD & CEO Punit Goenka, wanted to file his response in the case.

The lawyer for ZEE contended that offshore shareholders are trying to appoint six independent directors without there being no such mention in the Article of Associations.