The Zee board of directors appointed six independent directors and one nominee director of Essel Group,
Subhash Chandra, founder of Zee, resigns as the board chairman of Zee Entertainment with immediate effect, according to the company’s filing to Bombay stock exchange (BSE). The Zee Entertainment board has accepted Subhash Chandra’s resignation , however he will continue as a non-executive director of the board. Chandra’s resignation is aimed at complying with the rule which mandates that the chairman can’t be related to the MD and CEO of the company.
“While Chandra stepped aside from the chair, he also expressed the desire to step aside as a board member. However, the entire board requested him to not only continue as a board member but also to be the ‘mentor’ to the executive management and its MD and CEO,” the company added.
Moreover, the Zee board of directors appointed six independent directors, however, the new appointments are tentative as they are yet to be approved by the shareholders. Out of the six directors, two are members of the Essel group itself. Niharika Vora, Sunil Sharma, Subodh Kumar, R. Gopalan, Surendra Singh, and Aparajita Jain are the new board members. Further, the board nominates Subodh Kumar as the director of Essel Group. The reconstituted board conducted their first meeting on Monday, chaired by Gopalan, former finance secretary of India.
“The reconstitution of the board was to strengthen and induct independent members with varied experiences to build value and provide a strong signal to the existing and new institutional investors who have recently reposed their faith in the intrinsic value of the Company, by investing Rs. 4770 Crore,” as noted by the company’s statement.
Meanwhile, The Singapore government and Monetary Authority of Singapore have hiked their total holding in Zee Entertainment Enterprises Ltd (ZEEL) to 8.44% by acquiring shares through secondary market placement, according to a regulatory filing by the company. GIC Pvt Ltd on account of Government of Singapore (GOS) and Monetary Authority of Singapore (MAS) acquired a total of 2.85 crore shares, amounting to 2.967% stake in ZEEL on November 21.