Zee Entertainment's key investors demand removal of Subash Chandra's son Punit Goenka as director

Two investors of Zee Entertainment Enterprises Ltd have demanded the removal of the company’s managing director Punit Goenka, who is also the son of its founder Subhash Chandra. The demand was made during an annual general meeting on Tuesday.

The investors – the company's largest shareholder Invesco Developing Markets Fund, and OFI Global China Fund LLC – also called for the removal of two other directors, Manish Chokhani and Ashok Kurien, both of whom resigned from the board on Monday citing personal reasons.

Invesco and OFI Global China Fund together hold 17.9 percent stake in Zee Entertainment while the Goenka family holds just 3.99 percent.

According to Bloomberg Quint, Zee Entertainment informed stock exchanges on Monday that Kurien and Chokhani resigned with immediate effect. On September 11, in another filing to the exchanges, the company said the two investors called for an extraordinary general meeting for the removal of Goenka and the two directors and the appointment of six new directors to the board. In the meeting, Goenka was questioned about the company's operational performance and future strategy.

On the day of the meeting, the company’s stocks soared 40 percent, Livemint reported today.