Zee’s largest investors Invesco and OFI Global on Monday urged the National Company Law Tribunal (NCLT) to pass an order to ensure the convening of the company's Extraordinary General Meeting (EGM). A division bench led by Bhaskara Pantula Mohan and Narender Kumar Bhola is hearing the matter.
“Our apprehension of Zee not calling an EGM has come true. We are not concerned with the outcome of the EGM, but only concerned that an EGM should be called,” Invesco’s counsel Mukul Rohatgi told the bench.
“It was ‘mandatory duty’ of Zee to honour the EGM requisition as Invesco has 18% shareholding in the company and as per law, a minimum of 10% shareholding is needed to request for convening an EGM,” he added.
Rohatgi argued that otherwise, Zee would create hindrances if the funds independently call for EGM and requested for the appointment of a retired High Court judge to chair the EGM.
Earlier, senior advocate Navroz Seervai, appearing for Zee, said, “I oppose this petition on several jurisdictional issues and issues of maintainability. We feel the tribunal doesn’t have jurisdiction to hear this petition. We will argue when our turn comes but wanted to clarify this since these issues are very important. We will argue on this when the tribunal feels it necessary.”
On Thursday, the tribunal had directed Zee to consider the requisition for calling an EGM positively. The board of directors of Zee on the next day concluded that the requisition notice was illegal and invalid, and conveyed its inability to convene the EGM to the investors.
Zee informed the Bombay Stock Exchange on Saturday that the company has challenged the validity of EGM requisition notice in the Bombay High Court.
NCLT will hear the matter today.