Zee Entertainment Investors Renew Board Reshuffle Demand: Report

According to the Zee-Sony deal, the majority of directors of the merged entity will be named by Sony Group, while Goenka will become the managing director and CEO

Top shareholders of Zee Entertainment Enterprises renewed their call for an extraordinary general meeting to remove Chief Executive Punit Goenka from the board, the Business Standard reported, citing a letter. The letter from Invesco and OFI Global China Fund dated September 23 follows the company's disclosure of a merger deal with Sony Group Corporation's India unit last week. Invesco and OFI did not immediately respond to Reuters request for comments, while Zee said it will take necessary action as per the law.

According to the Zee-Sony deal, the majority of directors of the merged entity will be named by Sony Group, while Goenka will become the managing director and CEO. The deal was expected to ease the pressure Zee was facing from Invesco and OFI, which together hold a 17.88 per cent stake, for a management reshuffle.

However, in the letter, the two shareholders said Zee's disclosure of the deal was "symptomatic of the erratic manner in which important and serious decisions have been handled at the company."

Earlier this month, Invesco and OFI had asked Zee to remove Mr Goenka and two directors and sought the appointment of independent directors to the media and entertainment company.