ZEE-Invesco EGM Dispute
Zee gets relief as Bombay High Court grants injunction against Invesco's call for EGM
Mumbai/IBNS: The Bombay High Court on October 26 offered relief to Zee Entertainment by passing a restraining order against Invesco's call for an extraordinary general meeting (EGM).
"The Bombay HC has restrained Invesco from taking any action in furtherance of their requisition notice (to call an EGM)," said Nirav Shah, a partner at law firm DSK Legal. "The court will now have to decide whether the requisition notice is valid or not on the grounds raised by Zee and until the court decides this, the meeting requisitioned by Invesco cannot be held," he explained.
"The Bombay HC has restrained Invesco from taking any action in furtherance of their requisition notice (to call an EGM)," said Nirav Shah, a partner at law firm DSK Legal, according to a Money Control report.
"The court will now have to decide whether the requisition notice is valid or not on the grounds raised by Zee and until the court decides this, the meeting requisitioned by Invesco cannot be held," he explained, it added.
"There will be an injunction in terms of prayer clause (a) of the Interim Application, restraining Defendants Nos. 1 and 2 (including their employees, agents and anyone acting by, through or under them) from taking any action or step in furtherance of the Requisition Notice dated 11th September 2021, including calling and holding an EGM under Section 100(4) of the Companies Act, 2013," the court said in its October 26 order.
The court said that it will potentially be non-compliant to order Zee Entertainment to call an EGM.
Zee had contended the call for EGM by largest hareholders Invesco and OFI Global was illegal and invalid in the last hearing on October 22 when the court has asked it to fix a date for EGM.
"Invesco assumes that resolutions at EGM are somehow special, more sacrosanct than resolutions proposed by the board," the court stated, pointing out the fundamental flaw in Invesco’s grounds of appeal.
ZEE had sought an injunction against any action or steps as part of its requisition notice including calling and holding an EGM.
Invesco wanted to remove Zee Entertainment Managing Director and Chief Executive Officer Punit Goenka and appoint six independent directors on the board of the company.
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