After winning its appeal in the Bombay High Court against Zee Entertainment Enterprises (ZEE), Invesco Developing Markets Fund announced its decision to withdraw its requisition notice that sought the removal of MD and CEO Punit Goenka from the board of ZEE.
Invesco Developing Markets Fund (“Invesco”), Zee Entertainment’s (NSI: ZEEL) (“Zee” or the “Company”) largest shareholder with an ownership interest of nearly 18 percent, today issued the following statement on the Bombay High Court’s decision recognizing Invesco’s requisition for an extraordinary general meeting (“EGM”) as legally valid and upholding Invesco’s right to requisition an EGM at Zee:
“We are pleased with the Bombay High Court’s ruling, which we view as an important reaffirmation of shareholder rights in India and the mechanisms under Indian law to hold Boards accountable to their shareholders. The ruling is a boon for corporate governance in India and a win for shareholder democracy.
“Since we announced our intention to requisition an EGM and add six independent directors to Zee’s Board of Directors, Zee has entered into a merger agreement with Sony. We continue to believe this deal in its current form has great potential for Zee shareholders. We also recognize that, following the merger’s consummation, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening board oversight of the company. Given these developments, and our desire to facilitate the transaction, we have decided not to pursue the EGM as per our requisition dated 11 September 2021.
“Invesco will continue to monitor the proposed merger’s progress. If the merger is not completed as currently proposed, Invesco retains the right to requisition a fresh EGM.”