Zee Entertainment share price jumps 7.5% as shareholders reject proposal to reappoint Punit Goenka as director

The stock rose as much as 7.54% to ₹132.40 on the National Stock Exchange (NSE) in the early trade. At 9:25 am, it was up 5.26% to ₹129.59 apiece.

Zee shareholders reject reappointment of Punit Goenka as Director

In a regulatory filing on Thursday, Zee Entertainment Enterprises Ltd (ZEEL) said that the resolution to reappoint Goenka as director was defeated in the company's annual general meeting (AGM).

Only 49.54% of the votes cast supported the resolution, while 50.4% voted against Goenka's reappointment as director.

"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," ZEEL said.

Meanwhile, the three other resolutions for adopting the FY24 financial statement, declaring a dividend, and ratifying remuneration to cost auditors were cleared.

"Except for resolution number three, all the aforesaid resolutions were passed with requisite majority," it said.

According to The Companies Act 2013, an ordinary resolution at an AGM requires a simple majority (50% plus one).

Earlier this month, Goenka resigned as ZEEL's managing director but continued as CEO. He also decided not to seek reappointment for said position at the Annual General Meeting (AGM).

While sharing Punit Goenka's resignation letter, ZEEL said he is "withdrawing his consent for his re-appointment as managing director of the company as proposed in the notice of the ensuing annual general meeting".

Zee Entertainment's board approved the proposal for the reappointment of Goenka for a five-year term on October 18, effective January 1, 2025, to December 31, 2029.