New Delhi: The board of Zee rejected on Friday requests from two institutional investors for a meeting of shareholders, setting the stage for a courtroom battle that could affect an impending merger with Sony Group Corp.
The board’s decision comes a day after India’s companies court said Zee should consider a request by Invesco Developing Markets Fund and OFI Global China Fund LLC to hold an extraordinary general meeting.
“The Board has arrived at this decision by referring to various non-compliances under multiple laws and after taking into account the interests of all the shareholders and stakeholders of the Company,” Zee said in a regulatory filing, referring to guidelines set by India’s capital markets regulator and the broadcasting ministry as well as the companies law.
Invesco and OFI Global, which together account for 17.88% shares in Zee, had earlier this week filed a petition with the National Companies Law Tribunal (NCLT), taking legal recourse after Zee last week signed a merger deal with Sony Group Corp’s India unit in move that will create the country’s largest broadcaster.
“We feel that the company is not running as it should run in accord with the directions or for the welfare of the shareholders … we are worried that our investment will go down the drain,” a lawyer for Investo told the NCLT’s Mumbai bench on Thursday.
The next hearing in the case is scheduled for October 4. Zee’s chief executive officer Punit Goenka will become the merged entity’s managing director and CEO as part of the deal.
Invesco and OFI Global had earlier this month asked Zee to remove Punit Goenka and two directors from the board and to appoint multiple independent directors.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)