Requisition illegal, can't convene EGM: Zee Entertainment to Invesco

Zee Entertainment Enterprises Ltd (ZEEL) on Friday conveyed its inability to convene an Extraordinary General Meeting (EGM) to Invesco stating that the requisition notice is "invalid and illegal".

The company said in a statement that the Board, comprising experienced professionals, deliberated and discussed various legal and statutory implications of the requisition notice.

"The Board sought the opinions of independent counsel, legal experts including senior retired Supreme Court judges and evaluated the matter in a fair and transparent manner. In its meeting held on October 1, the Board has arrived at a conclusion that the requisition is invalid and illegal; and has accordingly conveyed its inability to convene the Extraordinary General Meeting to Invesco Developing Markets Funds and OFI Global China Fund, LLC," the statement said.

It said the company's board has arrived at this decision by referring to various non-compliances under multiple laws, including the Securities and Exchange Board of India Guidelines, Ministry of Information and Broadcasting Guidelines and key clauses under the Companies Act and Competition Act, and after taking into account the interests of all the shareholders and stakeholders of the Company.

"The Company cannot comment on any future actions since the matter is sub judice," the statement added.

Earlier on Thursday, the Mumbai Bench of National Company Law Tribunal (NCLT) had asked ZEEL to call Extraordinary General Meeting (EGM) on the plea of Invesco. The next hearing in the case is on October 4.

ZEEL had said in a statement on Thursday that Invesco's step is premature and it will act in the interest of shareholders and as per the law.

Invesco, which along with OFI Global China Fund LLC holds a 17.88 per cent stake in ZEEL, had moved the NCLT on September 29 -- around two weeks after it demanded an EGM to push for the ouster of the company's three directors including MD and CEO Punit Goenka.

( With inputs from ANI )