Shareholders Vote Against Reappointment of Independent Director to Zee Board

In a notable development, the shareholders of Zee Entertainment Enterprises have voted against the proposal to reappoint Alicia Yi as an independent director on the company’s board.

The shareholders of Zee Entertainment Enterprises have overwhelmingly voted against the reappointment of Alicia Yi as an independent director on the company’s board. According to an exchange filing, the special resolution seeking her reappointment received only 42 percent of the votes in favor, while a significant majority of 57.97 percent voted against it.

Zee Entertainment Enterprises has officially announced that Alicia Yi, who was proposed for reappointment as an independent director, has been unsuccessful in securing the necessary votes from shareholders. As a result, Alicia Yi’s tenure as an Independent Director of the company has come to an end, effective from July 13, 2023.

Alicia Yi, a distinguished professional, currently holds the position of Vice Chairman, Consumer Market at Korn Ferry. Based in Singapore, she is an accomplished member of the Board & CEO Services Practice, HR Practice, and PE Practice within the organization. With her extensive expertise and experience, Alicia Yi brings valuable insights and strategic guidance to her role, contributing to the success of Korn Ferry in the dynamic consumer market landscape. Her diverse skill set and membership in multiple practices underscore her ability to provide comprehensive and holistic solutions to clients across various industries.

Zee’s shares witnessed a notable surge during the trading session, closing up 8.6% at ₹216 per share. The stock reached an intraday high of ₹217.4 before settling at the closing price. 

Zee Entertainment Enterprises has stated that it will undertake appropriate measures to ensure compliance with the Companies Act, 2013, and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The objective of these actions is to achieve an optimal composition of the company’s Board of Directors. By emphasizing adherence to regulatory requirements, Zee Entertainment Enterprises aims to maintain a well-structured and effective board that upholds transparency, accountability, and good corporate governance practices. The company’s commitment to fulfilling these obligations underscores its dedication to enhancing the composition and functioning of its board, thereby safeguarding the interests of stakeholders.

Over the past year, Zee Entertainment Enterprises has experienced underperformance compared to the broader market. The company’s stock has witnessed a decline of 3.7%, while during the same period, the Nifty index has recorded a rise of 22.7%.

Zee Entertainment Enterprises was among the seven stocks that faced a trading ban on the futures and options (F&O) segment of the National Stock Exchange (NSE) on Friday. When a stock is placed under such a ban, it means that market participants are restricted from initiating new positions in stock futures or options contracts. However, existing positions can still be closed out or squared off.

Friday’s stock rally was partly attributed to the covering of short positions in the futures and options (F&O) contracts. When investors hold short positions in a stock, they sell borrowed shares in the hope that the stock’s price will decline, allowing them to repurchase the shares at a lower price and profit from the difference.