Bombay High Court Grants Injunction In Favour Of Zee In Invesco Dispute
The Bombay High Court on Tuesday granted an injunction in favour of Zee Entertainment Enterprises Ltd. in its dispute against Invesco Developing Markets Fund and OFI Global China Fund LLC.
The single-judge bench of Justice Gautam Patel of the Bombay High Court said it has decided to grant an injunction. The detailed order is not available as yet.
The interim order comes as a win for Zee which had moved the high court seeking an injunction against the EGM and declaring the requisition sent by Invesco as “illegal and invalid”.
Last week, the high court had proposed a solution to the parties: that the EGM be called and Zee's right to contest the validity of the resolutions post the EGM be reserved. Invesco had agreed to the court's suggestion but Zee's counsel Gopal Subramanium resisted the proposal saying the board of directors desire "vindication".
Invesco and OFI Global, together holding a 17.88% stake in the media major, are locked in a dispute with the company's current board and Managing Director and Chief Executive Officer Punit Goenka. The two funds are seeking to oust Goenka and appoint six new independent directors.
Before the high court, Zee pointed out the legal infirmities which lead the board to reject Invesco's EGM requisition:
Requirement of prior approval of the Ministry of Information and Broadcasting for any board appointments.
Non-compliance with SEBI's Listing Regulations that lay down Nomination and Remuneration Committee-led process for appointing independent directors.
Violation of company law that lays down stringent criteria for appointment of independent directors.
Non-compliance with Takeover Code, Competition Act and Zee's Articles of Association that caps the number of directors.
Invesco had responded saying as per company law, the board "shall" call a meeting if the numerical threshold of 10% is met.
Zee vs Invesco: Story So Far...
On Oct. 2, Zee Entertainment had moved the Bombay High Court against a demand by institutional investors Invesco Developing Markets Fund and OFI Global China Fund LLC seeking an EGM.
Besides the high court, the dispute is also playing out before the National Company Law Tribunal. Invesco had approached the NCLT, seeking the EGM. But Zee's board rejected the requisition.
The case came up for hearing before the NCLT last week which adjourned the hearing after the high court reserved its order on Zee's plea.
Also Read: Zee Vs Invesco + Reliance: Shareholder Activism Or Proxy War For Control?
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
