ZEE Merger
Zee should be given 'reasonable' opportunity to reply to Invesco's plea: NCLAT tells NCLT
Mumbai/IBNS: Zee Entertainment Enterprises Ltd (ZEEL) should be given "reasonable and sufficient opportunity" to reply to Invesco's plea seeking convening a meeting of the company's shareholders, the National Company Law Appellate Tribunal on Thursday told the NCLT, media reports said.
Zee had made an appeal seeking two weeks’ time to file a reply.
According to a BusinessToday.in report, the NCLAT order said: "Therefore, it is clear that the Learned NCLT has committed an error in not granting reasonable and sufficient time for filing a reply, which is a complete violation of Rule 37 of NCLT Rules and Principles of Natural Justice."
The order said: "Reasonable and sufficient opportunity should be given to the appellants for filing a reply", it stated.
"After hearing both the parties, the Learned Company Appeal (AT) No. 121 of 2021 15 of 15 NCLT should proceed further. The appeal is disposed of accordingly-no order as to costs," the order said, the report added.
"The due process of the law grants everyone an opportunity to present their case. NCLAT has taken cognizance of our plea and has reinforced the principles of natural justice, granting us a reasonable opportunity to be heard," a Zee spokesperson said in a statement.
The company said it will "continue to take all the necessary steps that are in the best interests of all its shareholders and as per the applicable law".
On Wednesday, Zee Entertainment Enterprises Ltd has sought the directive of the National Company Law Appellate Tribunal (NCLAT) to declare illegal the requisition of minority shareholders Invesco and OFI Global China Fund to convene an Extraordinary General Meeting (EGM), to discuss various issues including the ouster of Managing Director Punit Goenka.
Post the announcement of Zee's potential merger with Sony, key investors Invesco Developing Markets Fund and OFI Global China Fund LLC, who are resisting the move, called for a meeting.
The funds want the removal of Zee board members including Chief Executive Officer Punit Goenka, who’s leading 90-day exclusive merger talks with Sony, the report said.
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