CSR News – Two Directors at Zee Resign Over Corporate Governance Concerns

Two of the three independent directors who resigned from the board of Zee last week have cited corporate governance concerns for their departure from the company. Subodh Kumar and Neharika Vohra, who tendered their resignations on November 22, listed out seven reasons for their resignations. One objection raised by the duo was regarding laxity in spending of CSR (corporate social responsibility) amounts given to a related party foundation/trust.

The company has said it had disclosed the information regarding film advances in the annual report and analyst interactions, the CSR funds have been allocated in compliance with the law, audit of the issues pertaining to related party transactions and advances is underway by auditors, among others.

Meanwhile, Sunil Sharma in his resignation letter dated November 24 said subsequent to sale of shares by the promoter group, and reconstitution of the board, he has tendered his resignation. Last Monday Subhash Chandra, the founder of Zee Entertainment Enterprises, stepped down as chairman of the company after the promoter group sold a majority of its pledged stake in the company to a clutch of marquee investors from India and overseas. The board accepted Chandra’s resignation but stated it is yet to appoint a new chairman.

The company also announced appointment of R Gopalan, Surendra Singh and Aparajita Jain as the three new independent directors. These three, the company stated, have replaced Neharika Vora, Sunil Sharma and Subodh Kumar on the board of Zee.

Source: Financial Express