Zee and InGovern clash over new governance report

MUMBAI: The governance battle at Zee Entertainment Enterprises Limited (Zeel) has intensified after proxy advisory firm InGovern Research Services released a critical “Governance Watch” report on the company.

Zee has strongly rejected the report, calling it “biased,” “misleading,” and a repetition of old issues. The dispute centres on questions about who really controls one of India’s largest broadcasters.

InGovern says the Goenka promoter family still exerts strong influence over Zee despite holding only about 3.99 per cent of the company’s shares.

The firm’s main concern is Punit Goenka’s continued role as CEO. Shareholders voted against his reappointment as a director in late 2024, but he remains in charge of the company. InGovern argues this effectively bypasses the will of investors.

The report also highlights his pay package, which it says is about 40 times the average Zee employee’s salary.

Zee has denied the allegations and said the report lacks proper diligence. The company claims the issues raised are old and that the board has already taken steps to improve governance.

It also stated that all related-party transactions are transparent and that there is no governance crisis.

The dispute comes at a difficult time for Zee. The company is dealing with the collapse of its proposed merger with Sony and ongoing legal battles over cricket broadcasting rights.

With institutional investors owning most of the company, the debate over control versus ownership could affect investor confidence and future funding.

For now, InGovern is pushing for major board changes, while Zee is focusing on its turnaround plans. The outcome could shape how investors view the company’s governance going forward.