Zee Entertainment shares were in focus on Thursday after its shareholders Invesco Developing Markets Fund and OFI Global China Fund LLC moved the National Company Law Tribunal (NCLT) against the media conglomerate for failing to announce an extraordinary general meeting.

The two shareholders, which own a 17.9 percent stake in the media conglomerate, had earlier called for an EGM of shareholders seeking the removal of CEO and MD Punit Goenka, and reconstitution of the company’s board.

ALSO READ

In early deals, Zee shares traded 2.1 percent lower at Rs 303.4 on BSE, having declined as much as 3.1 percent to Rs 300.1 earlier in the day. The Nifty Media index was down 0.6 percent.

The petition against Zee Entertainment will be heard by the tribunal later in the day.

Invesco filed the petition under Sections 98 (1) and 100 of the Companies Act. While Section 100 gives the tribunal power to call for an EGM even on a suo moto basis, Section 98 (1) enables it to penalise a company in case if it fails to call an EGM.

According to regulations, Zee has time till October 2 to call for an EGM. Invesco and OFI Global China Fund own nearly 18 percent in Zee.