InvestorQ : Why did Subhash Chandra of Essel Group resign as the chairman of the board of Zee Entertainment?
Chandralekha Desai made post

Why did Subhash Chandra of Essel Group resign as the chairman of the board of Zee Entertainment?

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Mitali Bhutta answered.
3 years ago
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On 26 November, the chairman of the Essel Group Subhash Chandra resigned as Chairman of the board of Zee Entertainment Enterprises with immediate effect. However, he will continue to remain as the non-executive director of the company. Apparently, Mr. Chandra had expressed his intention to resign as Chairman of the Board due to the recent change in the shareholding pattern. It may be recollected that the Subhash Chandra family now only holds 5% stake in Zee Entertainment after the promoters had to sell most of their shares to make the good the loan repayment to the mutual funds against pledged shares. The Board has already accepted his resignation.

For the time being Subhash Chandra and his son Punit Goenka will be among the six independent directors on the board of Zee Entertainment. Punit Goenka is also the CEO of the company, in which position he shall continue for the time being. The stock prices have reacted negatively to the news as Subhash Chandra happens to be the founder promoter of Zee Entertainment and was the pioneer in launching entertainment channels in the early nineties when private players were first permitted into the television and cable space.

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