Business & Investment

Indian court proposes Zee’s shareholders’ meeting to beat Invesco

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New Delhi — Thursday’s Indian court proposes that G-Entertainment Enterprise convene a shareholders’ meeting, as demanded by top investor Invesco, which is driving the removal of TV network CEO and board renewal. bottom.

The Bombay High Court heard a petition filed by Gee earlier this month in response to notices issued by two Invesco-managed funds.

Judge GS Patel sets a “very dangerous precedent” when the court is asked to determine the strengths and weaknesses of the proposed resolution. This is a move that undermines the “democratic rights” of shareholders.

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The Bombay High Court said the resolution passed by the EGM would not come into effect immediately because Zee has the right to challenge it, and suggested that the company go ahead and convene a meeting.

The court also urged Zee and Invesco to come up with an EGM date and appoint and chair a neutral party.

Zee’s lawyers are expected to respond to the proposal on Friday when the court reopens.

Zee and Invesco did not respond to the request for comment.

Invesco wants to renew India’s television network over corporate governance concerns as it plans to merge with the local division of the Sony Group in Japan.

The move will create India’s largest broadcaster, but Invesco is concerned that Gee’s founding family, including CEO Punit Gonka, will be given the option to raise their stake in the merged company to 20%. I have stated. Zee’s founding family now owns a 4% stake.

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Gee’s founder and Goenka’s father, Subhash Chandra, accused Invesco of attempting a hostile takeover.

Invesco denied the charges, but said earlier this year that it had attempted to close a deal between Gee and a company owned by Reliance Industries and controlled by billionaire Mukesh Ambani.

“In my view, this dispute should not be underestimated as a dispute of Invesco control,” said Mohit Sarah, founder of Sarah & Partners Law Firm, who was not involved in the proceedings.

“This controversy sets up a Lithomas test on the enforceability of the country’s shareholding rights.” (Report by Sankarp Pharmatiyal and Abhirup Roy, edited by Edmund Blair and Kirsten Donovan)

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Indian court proposes Zee’s shareholders’ meeting to beat Invesco

https://financialpost.com/pmn/business-pmn/indian-court-proposes-zee-call-shareholder-meeting-in-win-for-invesco Indian court proposes Zee’s shareholders’ meeting to beat Invesco

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