It’s an all-out war between Zee Entertainment and its investor Invesco.

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Invesco is mounting pressure on Zee's board to comply with the rules to call for an extraordinary general meeting (EGM) to overhaul the board as requisitioned by the investors.

Invesco, in a letter, has reiterated its demand for an EGM to reconstitute the Zee board and also the removal of Punit Goenka as the director. It questions the standing of the current board to take any deal decisions at this time and this comes in light of the September 22 announcement by Zee Entertainment of having been given the in-principle approval by the board for Sony merger talks.

Also Read: Zee Chairman R Gopalan says focussing energy on Sony deal

Now, in the light of an EGM being called by some shareholders, Invesco said that it is duty-bound, the board of the company is duty-bound to call for an EGM as demanded by the shareholders and the new board will have the depth to navigate the company into the future. It said that the new independent board will be best suited to evaluate the potential strategic deals and also strengthen governance, which is a necessary step to the company's long-term future.

Also Read: Zee Entertainment shares extend rally on positive brokerage view; Sony deal seen value accretive

To put it in context, September 11 was when Invesco had requisitioned an EGM for the change of the board and the company has, up to October 2, to call for an EGM as per the rules. Invesco is mounting pressure on the company to call for that EGM.

Watch the accompanying video of CNBC-TV18’s Nisha Poddar for more details.

(Edited by : Dipika Ghosh)

First Published:Sept 27, 2021 9:44 AM IST