Two institutional investors holding around 17.88 per cent stake in Zee Entertainment have sought the removal of Managing Director Punit Goenka and two others as the directors of the company. Following the letter, Manish Chokhani and Ashok Kurien have resigned from the position of non-executive non-independent directors of the company with immediate effect, the company in a statement to the stock exchanges today.
The exact reason behind their decision to call for Goenka and two others' removal is not clear so far. Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) and OFI Global China Fund IIC are shareholders of Zee Entertainment Enterprises Ltd.
They hold 7,43,18,476 equity shares and 9,73,50,000 equity shares, respectively, representing 17.88% of the paid-up share capital of the company that carries the right of voting. These two investors, via the September-12 letter, had called for an extraordinary general meeting (EGM) of the company shareholders to pass the three ordinary resolutions.
They have sought the removal of Punit Goenka as the director of the company. "Resolved that pursuant to the provisions of Section 169 and other applicable provisions of the Companies Act- 2013 and the Rules framed thereunder, Punit Goenka be and is hereby removed from the office of the director of the company."
They also sought the removal of Manish Chokhani and Ashok Kurien as the directors of the company. Meanwhile, after the resignations, Kurien ceased to be a Member of Corporate Social Responsibility Committee and Stakeholders Relationship Committee of the board with immediate effect, the company said. It said Manish Chokhani also ceased to be a Member of Nomination and Remuneration Committee and Risk Management Committee of the Board.
As per Zee Entertainment, it received the investors' letter on September 12 titled 'Requisition for calling an Extraordinary General Meeting of the shareholders of the Company', under Section 100(2)(a) and other applicable provisions of the Companies Act, 2013.
Zee Entertainment said it's examining the said letter, related attachments and will take necessary action as per applicable law. The Zee Entertainment stock today closed at Rs 187.05, up Rs 4.05 or 2.21 per cent, as compared to the previous day close of Rs 183 on the NSE.
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