The share price of Zee Entertainment Enterprises (ZEEL) increased by more than 6% to ₹132.15 on Friday, November 29, following the rejection of a proposal by shareholders to re-appoint Punit Goenka as a director of the business. On November 28, 2024, at the company’s 42nd Annual General Meeting (AGM), the decision was made.
The resolution to reappoint Goenka did not receive the necessary majority, according to ZEEL’s regulatory filing. “Resolution No. 3 (Goenka’s reappointment) failed to get the requisite majority of votes as required under the provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” the filing read.
Voters supported Goenka’s reappointment proposal 49.54% of the time, while 50.46% opposed it. Goenka, who serves as the company’s CEO, has suffered a serious setback.
On the BSE, the price of ZEE’s shares was up 5.56 per cent at ₹130 at 9:49 a.m.
In order to concentrate entirely on his duties as CEO, Goenka had previously resigned from his post as Managing Director (MD).
ZEEL’s AGM resolution
The AGM also discussed three other resolutions: approving the payment of dividends, adopting the FY24 financial accounts, and approving the cost auditors’ compensation. “Except for resolution number three, all the aforesaid resolutions were passed with requisite majority,” said ZEEL.
According to reports, proxy consulting firms encouraged shareholders to vote against Goenka’s reappointment, which probably had an impact on the result. A simple majority (50% plus one vote) is required to pass an ordinary resolution under the Companies Act of 2013.
Goenka was reappointed as MD by the ZEEL board earlier in October for a five-year term beginning on January 1, 2025. Goenka then revoked his approval of the reappointment, stating that he wanted to concentrate on operational duties instead.
Earlier this month, Goenka informed the stock exchanges that he was leaving his position as MD but would continue to serve as the company’s CEO.
