Zee Entertainment Enterprises Ltd (ZEEL) has formally requested Culver Max Entertainment, the operator of Sony Pictures Network India, to postpone the effective date of their merger. The plea, made four days before the scheduled cut-off date of December 21, follows regulatory clearance but unfolds against the backdrop of a reported last-minute clash over the appointment of the chief executive for the merged entity.
Despite overcoming regulatory obstacles, ZEEL’s push for a merger delay is linked to an alleged disagreement on the choice of CEO. ZEEL asserts that Punit Goenka, its current CEO, should assume leadership, aligning with the agreement signed in December 2021. However, Sony expresses reservations due to an ongoing SEBI probe against Goenka, as reported by Bloomberg on November 28.
The Securities and Exchange Board of India (SEBI) had initially barred Goenka from serving as a key managerial person in ZEEL and its related entities in August. This decision was a result of concerns arising from the Zee-Sony merger and other factors. In response, the Securities Appellate Tribunal (SAT) granted relief to Goenka on October 30, overturning the SEBI order. The tribunal instructed Goenka to cooperate with SEBI’s ongoing investigation.
The backdrop to this dispute involves SEBI’s allegations against Goenka and ZEEL founder Subhash Chandra. Both have been accused of facilitating fund movements out of ZEEL and orchestrating their return through complex transactions. SEBI contends that these actions falsely portrayed ZEEL as having received dues from associate entities. As the merger hangs in the balance, the leadership tussle adds a layer of complexity to the anticipated union of the two media giants.
Zee Entertainment Welcomes Trio of Independent Directors Following AGM
Zee Entertainment Enterprises Ltd, the media and entertainment conglomerate, has announced the appointment of three new independent directors. Venkata Ramana Murthy Pinisetti, Shishir Babubhai Desai, and Uttam Prakash Agarwal will assume their roles with effect from December 17, 2023, as additional directors in the category of independent directors, according to a stock exchange filing made after the Annual General Meeting (AGM) held on Saturday.
Pinisetti, an accomplished lawyer, author, and academic practitioner specializing in HR and organization development, leads the employment and labour law practice at Economic Laws Practice (ELP). Desai, with 44 years of experience as a solicitor, is enrolled with the Bombay Incorporated Law Society and holds the title of solicitor of the Supreme Court of England and Wales (Non-Practicing). He is also a member of the Institute of Company Secretaries of India. Agarwal, a chartered accountant with over three decades of experience in taxation, finance, and restructuring, has worked extensively in areas such as statutory audit, income leakage audit, concurrent audit, and stock audit of public sector banks under RBI’s appointment.
These appointments follow the Annual General Meeting and come as a response to insufficient votes for Vivek Mehra and Sasha Mirchandani. The board of Zee Entertainment Enterprises Ltd expressed unanimous appreciation for the contributions of Mirchandani and Mehra, acknowledging their significant role in shaping the company’s growth. R. Gopalan, chairman of Zee Entertainment Enterprises Ltd, highlighted the distinguished and noteworthy presence of Mirchandani and Mehra in the corporate sector, emphasizing their deep support and contribution to the company’s success.