The move is reasoned as due to the failure by Zee to call for EGM as requested by Invesco – to remove Puneet Goenka and appoint 6 new independent directors proposed by Invesco.
It’s difficult to defend the decision because –
- As per regulations, Zee still has time till October 3, 2021 to call for the requested EGM (21 days from receipt of notice). Even in case of failure to do so, regulations allow an investor to call for the EGM at the cost of the Company.
- The move further seems badly timed – few days back only Zee had announced potential merger with Sony bringing cheer to the investor. Why it didn’t Invesco – hard to guess.
Looking at the overall developments, it seems there is a lot of information that is not known in the public domain and that warrants caution.