What's next for Zee Entertainment, promoter family, and Punit Goenka
Zee Entertainment Enterprises CEO & MD Punit Goenka and the promoter family he belongs to from continuing to call the shots with a tiny equity stake, if other shareholders in the company once again choose to give him a long rope. Our Bureau explains:
Will that change?
So far, it hasn't and chances are it won't — at least for some time.
Local and offshore financial institutions, which own about 61% in the company, may set a timeframe and wait for Goenka to find a 'white knight' — probably private equity investors. Also, they will await Sebi's final report on the company and the final court decision on the matter.
So, the present promoters continue?
De-promoterisation, or declassification of promoters, is typically a process initiated by a promoter who informs the board after its shareholding falls below 10%, among other things.
The board takes it on record, stock exchanges are informed of the decision, and, finally, shareholders pass the resolution. So, it's voluntary.
It's a step taken by promoters who no longer want to shoulder the liability (of being a promoter). But, in Zee, the story so far has been the opposite — the promoters as well as the CEO have been keen to continue in their respective roles.
But, can't shareholders push for a change?
If shareholders having 51% of the votes come together, they may seek the removal of a director.
