Invesco's demand for EGM illegal; board unable to approve : ZEE tells Bombay HC
Mumbai/IBNS: Zee Entertainment has said its board cannot give permission to hold an Extraordinary General Meeting (EGM), a day after Bombay High Court directed the company to fold the meeting as demanded by Invesco.
According to a Money Control report, the counsel appearing for ZEE Entertainment Ltd, Gopal Subramanium, said the board cannot give not do something that would turn out to be illegal.
Bombay High Court on Thursday ordered Zee Entertainment Enterprises Ltd to convene an extraordinary general meeting (EGM) as requisitioned by shareholders Invesco Developing Market Funds and OFI Global China Fund.
The court added that the EGM resolution has to be kept in abeyance till its decision on the legality and validity of EGM requisition is pending.
In response to the court's directive, the counsel appearing for ZEEL said the date for the EGM will be intimated to the court on Friday.
As per the court's order, the EGM is to be chaired by a retired judge, and the resolution will be subject to approval from the Ministry Of Information & Broadcasting, CNBC TV 18 reported.
The matter will come up in the Bombay HC next week on October 26.
On Thursday ZEE had told the court that the date of EGM will be intimated to on Friday but today ZEE's counsel once said that the company's biggest shareholders Invesco and OFI Global China Fund's demand to call an EGM be declared.
ZEE's counsel told the court that Invesco's requisition for EGM is illegal since the prior approval has not been taken by the shareholders from the Ministry of Information and Broadcasting (MIB) and it is also in violations of various rules and the rules laid down by the Securities and Exchange Board of India (SEBI), Money Control reported.
Meanwhile, the National Companies Law Tribunal (NCLT) said that the matter on Invesco's EGM plea will be heard on October 27, the report stated.
Advocate Navroz Seervai, appearing for Zee said the company would inform NCLT about the developments in the High Court a day before, when the matter is called on Wednesday next.