Ministry of Information and Broadcasting cannot sit in judgement of Zee Entertainment Enterprises Ltd.’s shareholders’ rights, Invesco Developing Markets Fund argued on Friday before the Bombay High Court.
The shareholders’ right to remove directors at a requisitioned general meeting is not affected by the MIB’s regulations or approval.
Invesco’s argument came in response to Zee Entertainment’s submission that prior MIB’s approval should be obtained before effecting a change in the board.
These submissions were presented before a division bench of Justice SJ Kathawalla and Justice Milind Jadhav, which is hearing a challenge preferred by Invesco against the single judge’s order granting an interim injunction in favour of Zee Entertainment.
On Oct. 26, the high court had granted an injunction in favour of Zee Entertainment restricting Invesco to act on its September requisition to call an extraordinary general meeting.
Invesco and OFI Global China Fund LLC, both foreign institutional investors that together hold a 17.88% stake in the media company, are locked in a dispute with Zee Entertainment’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 via an EGM.