Stock rallies 15% as shareholders want to throw out MD & board members at today's meet

Zee Entertainment has a crucial shareholders meet today where the companies largest shareholder has called for the ouster of the MD Punit Goenka. Invesco also sought for a board recast and asked for the resignation of two independent directors Ashok Kurien and Manish Chokhani, both of whom appear to have resigned on Monday of their own accord.

Infact proxy advisory firm Institutional Investors Advisory Services (IiAS) had raised serious corporate governance concerns in the company by asking shareholders not to vote for re-appointing Kuiren & Chokhani on the company's board at the AGM.

The current MD, Punit Goenka is the last promoter member on the Zee Ent board. The promoters, Subhash Chandra family own only 4 percent of the company and had to sell their stake to pay off the debt worth Rs 13,000 crore taken by the promoter entities of ZEEL after defaulting.

Invesco Developing Markets Fund and OFI Global China Fund–owned by American independent investment management company Invesco who together own 18% of the compay have sought an extraordinary general meeting (EGM) to vote on resolutions to remove the directors and induct six new independent board members.

Also Read: Zee Entertainment: Stock of the day, brokerage bet on management coup, upgrade stock

Founder of Zee Subhash Chandra stepped down in 2019 and accepted the blame for placing a series of mistimed and expensive infrastructure bets leading to losses for the firm.

But Zee Entertainment is not the only Zee promoter affiliated firm facing shareholder backlash. Dish TV which is run by Subhash Chandra's brother was also sent a similar communiqué by their largest shareholder Yes Bank seeking the removal of the managing director Jawahar Goel and other independent directors over lapses in corporate governance.