The proposal to re-appoint Chief Executive Officer Punit Goenka as a Director was rejected by shareholders at Zee Entertainment Enterprises' 42nd Annual General Meeting on November 28. In an exchange filing, the firm stated that the motion to re-appoint Goenka as a director at Zee was rejected by a vote of 50.4 to 49.5 per cent. "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," Zee said.
According to analysts, the vote will show shareholders' confidence in Zee's leadership and future. According to earlier reports, Goenka's continuance will be significantly influenced by Zee's institutional owners, who include foreign portfolio investors (FPIs) and domestic mutual funds. According to Moneycontrol, proxy consultants InGovern and IiAS both suggested that Zee shareholders vote against Goenka's reappointment.
A few days before the AGM, Punit Goenka, the CEO of Zee, retracted his appointment as Managing Director. "In continuation to our earlier disclosure dated November 18, 2024, relating to the resignation of Punit Goenka as Managing Director of the Company, we hereby enclose the letter received from Punit Goenka resigning from the office of Managing Director of the Company and withdrawing his consent for his re-appointment as Managing Director of the Company as proposed in the Notice of the ensuing Annual General Meeting of the Company scheduled to be held on November 28, 2024. Goenka, however, is retaining the post of CEO."
Goenka had asked the board to relieve him from the position of managing director of the company as he wants to 'focus' on the operational responsibilities as the chief executive officer, the media and entertainment firm said in a statement on November 18.
With this move, Goenka wants to 'dedicate' his time for the future of the company and enhance its performance, the statement said.
“The company remains on a firm footing and is taking all the necessary steps to build a robust foundation for its future. In order to ensure we maintain a sharp focus on achieving our targeted aspirations, the core businesses require dedicated time and energy which can only be achieved in an operational capacity. In the long-term interest of the company and all its stakeholders, I have approached the Board with a request to attain operational focus as the Chief Executive Officer. I am grateful to the Board for recognizing my efforts and supporting me in this approach,” Goenka said.
In recent months, Zee has witnessed a significant reshuffling of its leadership, marked by the promotion of key executives and the departure of several others. The company had also implemented a 15 percent reduction in its workforce, with Goenka at the helm of these cost-cutting efforts. His father, media mogul Subhash Chandra, has also played an instrumental role in steering the media and entertainment giant, particularly in the wake of the collapse of the Zee-Sony merger deal in January 2024.
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