When shareholders reject the request to re-appoint Punit Goenka as a director, Zee Entertainment's share price jumps 7.5%.

Zee Entertainment share price: Zee Entertainment Enterprises Ltd. (ZEEL) stated in a regulatory filing that the motion to re-appoint Goenka as a director was defeated at the annual general meeting (AGM) of the firm.

Zee Entertainment share price: Following the company's shareholders' rejection of a plan to re-appoint Punit Goenka as a director, Zee Entertainment's shares jumped more than 7% on Friday.

In early trading, the shares on the National shares Exchange (NSE) increased by as much as 7.54% to ₹132.40. It was up 5.26% to ₹129.59 per share at 9:25 a.m.

Punit Goenka's reappointment as a director is rejected by Zed shareholders.

Zee Entertainment Enterprises Ltd. (ZEEL) stated in a regulatory filing on Thursday that the motion to re-appoint Goenka as a director was defeated at the annual general meeting (AGM) of the business.

Of those who voted, 50.4% opposed Goenka's reappointment as director, and just 49.54% supported the resolution.

"Resolution No. 3 (Goenka's reappointment) failed to get the requisite majority of votes as required under the provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," ZEEL stated.

The three other resolutions, which approved compensation to cost auditors, declared a dividend, and adopted the FY24 financial statement, were approved in the meantime.

"Except for resolution number three, all the aforesaid resolutions were passed with requisite majority," it said.

The Companies Act of 2013 states that a simple majority (50 percent plus 1) is needed for an ordinary resolution at an AGM.

Goenka remained CEO of ZEEL after stepping down as managing director earlier this month. At the Annual General Meeting (AGM), he also made the decision not to run for reappointment to the aforementioned position.

ZEEL stated that Punit Goenka is "withdrawing his consent for his re-appointment as managing director of the company as proposed in the notice of the ensuing annual general meeting" while releasing his letter of resignation.

On October 18, the board of Zee Entertainment gave its approval to Goenka's reappointment for a five-year term that would take effect on January 1, 2025, and end on December 31, 2029.