As the OFI Global China Fund and Invesco Developing Markets Fund which together hold the paid-up share capital of 17.88 % of Zee Entertainment Enterprises Ltd that have a voting right, have decided to remove the CEO of ZEEL Punit Goenka as the Director, along with Manish Chokhani and Ashok Kurien, two other directors of the company.
Both Ashok Kurien and Manish Chokhani resigned on 13th September 2021 as the Non-Executive Non-Independent and Non-Executive Directors of the company. ZEEL informed the Stock Market consecutively after their resignation that Kurien is no more a Member of the Corporate Social Responsibility Committee and Stakeholders Relationship Committee of the Board.
ZEEL also said that Chokhani is no more a part of the Member of Nomination and Remuneration Committee and also Risk Management Committee of the Board with the effect immediately.
After the removal of old directors, The investors have also put forward the appointment of new six independent directors:
Gaurav Mehta, India Head, The Raine Group
Rohan Dhamija, Senior Partner, Analysys Mason
Surendra Singh Sirohi, Independent Director, HFCL
Aruna Sharma, only Director of the Welspun Enterprises and Jindal Steel
Naina Krishna Murthy, Managing Partner and Founder of K Law
Srinivasa Rao Addepalli, Director, Tata Communications Payment Solutions
Even OFI Global and Invesco Markets have also set an exceptional General Meeting with the ZEELs shareholders for voting on the resolutions concerning the appointment of six new Directors and removal of three old Directors.
Although the investors have not stated any particular reason or reasons for reorganizing the Board of Directors in ZEE, according to some sources in the industry, ZEE’s founders and its investors have been in a state of quarrelsome and disagreement over the company’s performance since the past few times and the lapse in some governance matters.
In response to the investors’ letter, ZEEL stated that it is monitoring the letter and all the attachments related to it and will take obligatory action as per the law applicable.”
ZEEL also said “ Although the company has always been doing well as per business performance under the leadership of present CEO, outmatch against industry average has come together nearly over the last three years because of poor performance in the Hindi GeC space and loss of share in the regional category on the back of competitive intensity.