Media veteran Subhash Chandra has resigned as chairman of Zee Entertainment Enterprises Limited. The company told the stock exchanges that Chandra's resignation was accepted under Sebi guidelines. Earlier, SEBI had directed that the chairman of the board and the managing director or CEO of the company should not be the same person. Under this, Chandra has resigned as chairman. However, he will remain a non-executive director of the company.
During this the company also talked about the reorganization of the board. The company stated that its board consists of three independent directors. After this, the number of board members has been increased to six, in addition to this two members of Essel Group have also been included in it. Earlier in September, the company sold its 11% stake to Invesco-Oppenheimer for Rs 4224 crore.
Through this, a loan of four thousand crore rupees was paid. Significantly, Atlanta based company Invesco has 7.74% stake in Zee Entertainment since 2002. Significantly, Chandra's resignation comes at a time when Essel Group, which is struggling with debt crisis, is trying to sell its stake to get rid of debt.
