While it has welcomed a deal between Zee Entertainment Enterprises and Sony Pictures Networks, the former’s largest shareholder Invesco has opposed any structure that unfairly rewards the company’s promoter shareholders at the expense of ordinary shareholders.Hitting out at Zee’s reckless public relations campaign in response to its request for leadership changes at the company, Invesco said their actions are aimed at avoiding true accountability for the governance lapses and shareholder value destruction that the current leadership and board have presided over. “We are calling on Zee shareholders to join us in asking why the founding family, which holds under 4% of the company’s shares, should benefit at the expense of the investors who hold the remaining 96%,” wrote Invesco chief investment officer Justin Leverenz in an open letter to the company’s shareholders.The US fund, which owns nearly 18% in Zee, restated the need to overhaul Zee’s board because of the governance and leadership failures at the company.It added that it would pursue the extraordinary general meeting (EGM) request to hold the board and management accountable and effect necessary change at Zee. After Invesco sought a board reshuffle at Zee, the latter proposed a merger with Sony Pictures Networks, which allows the company’s promoters to hold 20% in the combined entity.“It is concerning that the current terms of the Sony-Zee announcement gift additional 2% to the founding family via a non-compete that seems entirely unjustified, while also providing a pathway for them to raise stake from 4% to 20% via methods that remain wholly opaque.” Invesco further said since the EGM demand, Zee’s management and board have gone to great lengths to deny a basic shareholder right enshrined in Indian law.“A reckless and desperate public relations effort on the part of Zee’s founding family aims to deflect from the issues core to Zee.” It further said, “Zee needs a demarcation between the promoter family and the institution. Its board needs to be strengthened with independent directors who take their jobs seriously, who robustly debate vital decisions and who serve as guardians of all shareholder interests.”