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Last Updated : Nov 27, 2019 08:15 PM IST | Source: Moneycontrol.com

3 directors resign from Zee Entertainment; Rs 2,200 crore in film advances and CSR spending cited among reasons

According to a release filed with the exchanges, Sharma tendered his resignation on November 24 after the sale of shares by the promoter group and the reconstitution of the board.

 
 
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Zee Entertainment, on November 27, announced the resignation of independent directors Sunil Sharma and Neharika Vohra, and non-independent director Subodh Kumar.

According to a release filed with the exchanges, Sharma tendered his resignation on November 24 after the sale of shares by the promoter group and the reconstitution of the board.

The release noted that Kumar and Vora had given many reasons for their resignation, one of those being the alleged laxity in spending of CSR amounts given to a related party foundation/ trust.

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“The CSR funds have been allocated in compliance with the law (and this has been certified by chairman of the CSR committee) and necessary certification obtained,” the company replied.

Kumar and Vora stated that no action taken on the large outstanding from Dish TV and Siticable for the content supplied by ZEEL was a reason for their resignation.

“The same have been secured by definitive plan and situation is being strictly monitored as instructed by the Board and also discussed in various analyst calls,” the company said.

Kumar and Vora also stated that film advances had been given from 2018 to 2019 amounting to Rs 2,200 crore was a reason for their resignation. “Information already disclosed in the Annual Report and clarified in various investor interactions” was the company’s reply.

“Rs. 200 Crore of the Company's fixed deposits towards promoter loans and the Management did not taken legal action” was another reason given by Kumar and Vora for their resignation.

“Issues pertaining to the wrongful revocation of the bank guarantee stand resolved with the Company having being secured by the promoter companies and appropriate legal notices were sent to the bank at the relevant time” were the company’s comments.

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First Published on Nov 27, 2019 07:21 pm
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