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Invesco says Zee’s failure to take steps within its notice period to call an EGM led to legal action: Read response here

Invesco has moved NCLT against Zee for its failure to hold an EGM to reconstitute board. Experts suggest Zee still has a few days to comply with EGM rules. Invesco responded to Moneycontrol’s query for taking legal action, following is the full response.

September 29, 2021 / 11:04 PM IST
Representative image

Representative image

Invesco has moved NCLT against Zee for its failure to hold an EGM to reconstitute board. Experts suggest Zee still has a few days to comply with EGM rules.

Invesco responded to Moneycontrol’s query for taking legal action. Read the response here:

On September 11 we sent an EGM requisition letter to Zee, exercising our rights as ordinary shareholders to protect shareholder value in the company. This initiative, which is unique in the history of our fund, was taken with a belief that a newly constituted Board elected by its shareholders would be foundational in reviving the long term health of the business. On September 23, 2021, we reiterated our call for an EGM in a letter to the Board of Directors of Zee.

The Company's failure to take steps within its notice period to call an EGM, coupled with its delay in noticing our EGM on September 11th and failure to notice our September 23rd letter to the Exchanges, has prompted us to file a petition before the NCLT to enforce our rights as shareholders to call for this EGM of the company.

We have a long history of making long term investments in many world-class companies that have emerged in India. Our tenure as shareholders in Zee reflects this commitment and we continue to believe that the business is valuable, whether on its own or in alignment with a strategic partner. The deep bench of talent within Zee and in the Indian media industry has helped shape our view that any such transitions, if required, can be properly managed. As shareholders, we will continue our efforts to establish a fully staffed, independent and strengthened board at Zee.

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We deeply admire and respect the shareholder safeguards embedded in India's corporate legal framework. Our latest petition before the NCLT is intended to ensure that these safeguards are upheld so as to give shareholders of Zee a voice in choosing the governing board that will take Zee into a brighter future. On September 11, 2021, we sent an EGM requisition letter to Zee, exercising our rights as ordinary shareholders to protect shareholder value in the company. This initiative, which is unique in the history of our fund, was taken with a belief that a newly constituted Board elected by its shareholders would be foundational in reviving the long term health of the business. On September 23, 2021, we reiterated our call for an EGM in a letter to the Board of Directors of Zee.

The Company's failure to take steps within its notice period to call an EGM, coupled with its delay in noticing our EGM on September 11th and failure to notice our September 23rd letter to the Exchanges, has prompted us to file a petition before the NCLT to enforce our rights as shareholders to call for this EGM of the company.

We have a long history of making long term investments in many world-class companies that have emerged in India. Our tenure as shareholders in Zee reflects this commitment and we continue to believe that the business is valuable, whether on its own or in alignment with a strategic partner. The deep bench of talent within Zee and in the Indian media industry has helped shape our view that any such transitions, if required, can be properly managed. As shareholders, we will continue our efforts to establish a fully staffed, independent and strengthened board at Zee.

We deeply admire and respect the shareholder safeguards embedded in India's corporate legal framework. Our latest petition before the NCLT is intended to ensure that these safeguards are upheld so as to give shareholders of Zee a voice in choosing the governing board that will take Zee into a brighter future.
Nisha Poddar is an Editor-M&A, CNBC-TV18
first published: Sep 29, 2021 11:04 pm

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