A day after the Bombay High Court on October 21 ordered Zee Entertainment to hold extraordinary general meeting (EGM), the media company has argued that the board can’t give nod to something that will turn out to be illegal.
The counsel appearing for Zee, Gopal Subramanium, said that the company believes that holding EGM is illegal.
The single judge bench of Justice GS Patel will hear the Zee-Invesco matter on October 26.
On October 21, Bombay HC had asked Zee to call an EGM as requisitioned by shareholders Invesco Developing Market Funds and OFI Global China Fund.
The court had also said that the EGM resolution has to be kept in abeyance till it decides on the legality and validity of EGM requisition.
The EGM is to be chaired by a retired judge, the court had said, adding that the resolution will be subject to the approval from the Ministry of Information & Broadcasting.
Subramanium on October 21 during the Bombay HC hearing had said that the company will inform the date of the EGM on October 22.
However, Zee in the Bombay HC hearing today has once again pointed out that the company's biggest shareholders Invesco and OFI Global China Fund's demand to call an EGM be declared illegal.
Justice Patel during the hearing had noted that Section 100 of the Companies Act contemplates the refusal by the Board to act on the requisition.
While the matter will come up in the Bombay HC next week, Zee today has to file its reply to Invesco's EGM plea in the National Company Law Tribunal (NCLT).
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