ZEEL AGM: Shareholders reject proposal to reappoint Punit Goenka as director

ZEE Entertainment Enterprises Ltd's (ZEEL) held its 42nd Annual General Meeting on November 28, where shareholders rejected a proposal to reappoint Chief Executive Officer Punit Goenka as a Director. The proposal for reappointment of Goenka as Director at Zee was defeated by a 50.4 percent - 49.5 percent vote, the company said in an exchange filing. "Resolution No. 3 (Goenka's reappointment) failed to get 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.

Analysts had suggested that the vote will reflect confidence levels among shareholders regarding ZEEL’s governance and future. Previous reports had noted that ZEEL’s institutional shareholders, including domestic mutual funds and foreign portfolio investors (FPIs), would play a critical role in determining Goenka’s continuity. Moneycontrol had reported that Proxy advisors InGovern and IiAS had both recommended that ZEEL shareholders should vote against the re-appointment of Goenka.

ZEEL's CEO Punit Goenka withdrew himself from reappointment for the Managing Director post a few days before the AGM. Goenka had resigned from the position of Managing Director, with the company stating in an earlier exchange filing, "...in continuation to our earlier disclosure dated November 18, 2024 relating to resignation of Mr. Punit Goenka as Managing Director of the Company, we hereby enclose the letter received from Mr. 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, ZEEL 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.