Invesco Developing Markets Fund and OFI Global China Fund, which together own a 17.88% stake in ZEEL, on 11 September 2021 served a requisition notice to ZEEL to hold an EGM to remove Punit Goenka from the firms board as director.
Goenka, son of Essel Group founder and chairman Subhash Chandra, is managing director and chief executive officer of ZEEL.
The two institutional investors also called for the removal of two of ZEELs independent directors, Ashok Kurien and Manish Chokhani. The letter also proposed the appointment of six independent directors, including Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta.
On 13 September, ZEEL informed that Chokhani and Kurien resigned as non-executive non-independent directors.
ZEEL board met on 1 October 2021, to deliberate the course of action in relation to the requisition notice. Based on legal advice from the companys counsel, the ZEEL board unanimously concluded that the requisition notice is not valid, as it suffers from multiples legal infirmities.
ZEEL is a media and entertainment company engaged in providing broadcasting services. On a consolidated basis, ZEEL posted a net profit of Rs 213.8 crore in Q1 FY22, steeply higher than net profit of Rs 30.37 crore in Q1 FY21. Net sales increased 35% to Rs 1775 crore in Q1 FY22 from Rs 1312 crore posted in Q1 FY21.
Meanwhile, ZEEL informed today (26 October 2021) that its board meeting on Wednesday, 27 October 2021, to consider Q2 results has been cancelled due to lack of quorum. The next date of meeting will be duly informed with fresh notice, it added.
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