The court on Thursday called on G-Entertainment Enterprise to convene a shareholders’ meeting, as requested by Invesco, a top investor driving the removal of the CEO of television networks and the renewal of the board.
However, the resolution passed at the Extraordinary General Assembly will be withheld until the Bombay High Court decides on the legality of Invesco’s request for such a meeting. Zee and Invesco did not immediately respond to the request for comment.
Invesco, which owns nearly 18% of Gee in two funds, wants to transform its television network over corporate governance concerns when planning a merger with a local unit of the Sony Group in Japan.
The move is set to create India’s largest broadcaster, but Invesco is concerned that Gee’s founding family, including CEO Punit Gonka, will be given the option to raise the merged company’s stake to 20%. Was announced.
Gee’s founder and Goenka’s father, Subhash Chandra, accused Invesco of attempting a hostile takeover. Invesco denied the charges, but said earlier this year that it had attempted to close a deal between Gee and a company owned by Reliance Industries and controlled by billionaire Mukesh Ambani.
“In my view, this controversy should not be underestimated as a controversy over Invesco’s control,” said Mohit Saraf, founder of Saraf & Partners Law Firm, who was not involved in the case.
“This controversy will set up a Lithomas test on the enforceability of the country’s shareholding rights.”