Why is Zee Entertainment refusing to call the EGM, despite the NCLT order?

Zee Entertainment has flatly refused to consider the Invesco Fund demand for special EGM to be called. IN fact, Zee has gone one step ahead and even filed a petition in court against the notice issued by Invesco Fund and OFI Global China Fund. Zee has reiterated that an EGM cannot be called with appropriate approvals from the SEBI as well as an approval from the Ministry of Information and Broadcasting. That is essential for board changes.

Interestingly, Invesco and OFI Global China Fund jointly own 17.88% in Zee while the former promoter group of Subhash Chandra owns 3.44%. However, post the merger, the stake of the Subhash Chandra family will go up to 4% in the combined entity while that of Invesco and OFI Global combined will fall to 8.6%. That is what the investors are uncomfortable with. They had got a favourable order from the NCLT in this regard.