February 05, 2020

Ministry Of Corporate Affairs To Scrutinize ZEE’s Books

[ By Bobby Anthony ]


The Ministry of Corporate Affairs (MCA) is all set to scrutinize the books of Zee Entertainment Enterprises (ZEE) under Section 206 of the Companies Act, 2013 to investigate alleged irregularities.

The development has come soon after recent resignations of a few of the company’s independent directors, who had raised corporate governance issues as reasons for their exit.

Incidentally, Section 206 of the Companies Act, 2013 allows the MCA to furnish in writing information or explanation; or to produce documents, within such reasonable time, as may be specified in the notice.

Accordingly ZEE’s books have been called in for scrutiny, after which board members may also be summoned in order to probe into the allegations leveled by past independent directors who quit the company recently.

It may be recalled that on November 25, 2019, two non-executive directors namely, Subodh Kumar and Neharika Vohra had alleged governance lapses in the company’s treasury operations, related-party deals, film financing as well as corporate social responsibility expenses.

Later, another independent director Sunil Sharma also resigned, after citing personal reasons.

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