ZEEL share price surges over 6% as shareholders reject Punit Goenka’s reappointment as director | Stock Market News

Stock market today: Zee Entertainment Enterprises (ZEEL) share price climbed over 6 per cent to ₹132.15 on Friday, November 29 after shareholders rejected a proposal to reappoint Punit Goenka as a director of the company. The decision was made during the company’s 42nd Annual General Meeting (AGM) on November 28, 2024.

In a regulatory filing, ZEEL stated that the resolution to reappoint Goenka failed to secure the required majority. “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.

The proposal for Goenka’s reappointment received 49.54% votes in favour, and 50.46% in against. This marks a significant blow for Goenka, who is the Chief Executive Officer (CEO) of the company.

ZEE share price was trading in the green, up 5.56 per cent at ₹130 at 9:49 am on the BSE.

Goenka had earlier stepped down from his position as Managing Director (MD) to focus solely on his role as CEO. 

ZEEL’s AGM resolution

The AGM also addressed three other resolutions — adoption of financial statements for FY24, dividend payment, and ratification of the remuneration of cost auditors. “Except for resolution number three, all the aforesaid resolutions were passed with requisite majority,” ZEEL clarified.

Proxy advisory firms had reportedly advised shareholders to vote against Goenka’s reappointment, which likely influenced the outcome. The Companies Act, 2013, requires an ordinary resolution to receive a simple majority (50% plus one vote) to pass.

Earlier in October, the ZEEL board had approved Goenka’s reappointment as MD for a five-year term starting January 1, 2025. However, Goenka later withdrew his consent for the reappointment, citing his decision to focus on operational responsibilities.

In his resignation letter shared with the stock exchanges earlier this month, Goenka said he was stepping down as MD but would remain the company’s CEO.

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