Invesco Fund, which owns 18% of Zee Entertainment Enterprises, reiterated its demand to oust Punit Goenka, current CEO and CEO, from the board of directors and to induct its six nominees to Zee’s board.
In a letter to ZEEL’s board of directors, Invesco said the newly formed board, backed by the strength of independence, would be best suited to assess and oversee the potential of strategic deals like the one announced on September 22 with Sony. , as well as to make decisions on the future direction of the company.
When contacted, a spokesperson for ZEEL said: âThe matter is seized of the board. The company will take the necessary measures in accordance with applicable law.
Invesco & Oppenheimer said that Zee Entertainment’s September 22, 2021 disclosure of the Sony deal is symptomatic of the erratic way in which important and serious decisions have been handled within the company, Invesco said, according to reports. television reports.
In its letter, Invesco said it has been an investor in ZEEL for over 10 years and continues to believe the company is valuable, either in itself or in strategic alignment with partners such as Sony. The letter has been reviewed by Business Standard.
“However, decisions of material strategic importance must follow and not precede actions towards the establishment of an appropriate and independent governance structure as determined by the shareholders of the company. In this context, and in the context of our AGE requisition, your disclosure of September 22, 2021, is symptomatic of the erratic manner in which important and serious decisions have been handled in the company, âhe said.
Invesco stated that in order to protect shareholder value and in exercising his statutory rights as an ordinary shareholder, he had requested the company to hold an EGM, and it was the duty of the board of directors under the law companies to do it now. “At this EGM, the shareholders of the company will decide on the composition of the board of directors of the company in a free and democratic manner,” he said.
To this end, Invesco proposed the removal of non-independent directors and recommended six additional independent directors for review and vote by shareholders, and in the process of forming a fully and truly independent board of directors. âThese six additional independent directors come from diverse backgrounds and are expected to bring additional professionalism, guidance and governance standards to the operations of the company,â the fund said.
âWith the existing set of independent directors, we believe the board of directors of the company will have the depth to lead the company into the future.
A newly formed board backed by the strength of independence will be best suited to assess and oversee the potential for strategic transactions, such as the one announced on September 22, 2021, on a non-binding basis, as well as for making decisions on the future direction of the company, âhe said.
“We note that the September 22, 2021 disclosure refers to the future composition of the board of directors of the company at a time when the current composition of the board of directors is subject to a shareholder vote following our EGM requisition. “, did he declare.