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Zee-Invesco court war: Division bench to continue hearing case on December 6

Invesco has challenged the order by single judge order of Bombay High Court that restrained Invesco and OFI Global China Fund from taking any action in furtherance of their requisition notice to Zee to hold an extraordinary general meeting (EGM).

December 02, 2021 / 05:11 PM IST
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The division bench of the Bombay High Court headed by Justice SJ Kathawalla and Milind Jadhav has kept the Zee Entertainment and Invesco matter for further hearing on December 6.

Invesco has challenged the order by single judge order of Bombay High Court that restrained Invesco and OFI Global China Fund from taking any action in furtherance of their requisition notice to Zee to hold an extraordinary general meeting (EGM).

Senior counsel Janak Dwarkadas appearing for Invesco has been arguing that shareholders holding 10 percent or more of the paid-up share capital are entitled to demand for an EGM and that this is a paramount right of shareholder in corporate democracy. He said that the single judge order takes away the democratic rights of the shareholders.

On November 29, he had said that the Bombay High Court bench had earlier suggested that even a single shareholder can block a requisition if he feels it is invalid.
He had also said that Zee hijacked National Company Law Tribunal (NCLT) proceedings by filing a suit before Bombay HC.


"NCLT has the jurisdiction to decide on the requisition for an extraordinary general meeting (EGM)," Dwarkadas had added.


The matter had first come up for hearing on October 29, after Zee’s largest shareholder Invesco and OFI Global approached the bench, challenging an October 26 Bombay High Court ruling by justice Gautam Patel.


Judge Patel had granted an injunction against Invesco’s call for an EGM on October 26. The court had observed that directing Zee to call an EGM would be potentially non-compliant. It said that there was a fundamental flaw in Invesco’s construct.



On the Bombay HC order, Dwarkadas said that the court's judgement to give injunction against requisition will have far reaching impact. "Court cannot injunct a meeting as it is a statutory right of a shareholder with 1/10 share capital," he added.


Law which was well settled has been unsettled with Zee’s injunction, said Dwarkadas.
Moneycontrol News
Tags: #Companies
first published: Dec 2, 2021 05:11 pm

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