The shares of Zee Entertainment Enterprise have rallied by nearly 8% to day’s high of Rs 132.60 on BSE after the shareholders blocked Punit Goenka's reappointment as Zee Director during the company's annual general meeting (AGM) on Thursday.According to voting results, 50.45% of shareholders opposed the resolution. This development follows Goenka's recent resignation as managing director and withdrawal of consent for reappointment, initially slated for the AGM on November 28. Despite these changes, Goenka remains the CEO, a position he will hold for a five-year term until 2029.In another key decision, the Zee board approved the appointment of Saurav Adhikari as additional director in the capacity of non-executive director, effective November 29. This appointment, recommended by the Nomination & Remuneration Committee, is subject to member approval.During the AGM, Goenka shared his vision for ZEEL's future, focusing on improving short-term performance while ensuring long-term sustainability. He reaffirmed the company's dual objectives of generating attractive returns for shareholders and sustaining profitability with healthy margins. He attributed ZEEL's operational strategy to three pillars: frugality, optimisation and quality content.Acknowledging challenges such as a subdued advertising environment, Goenka highlighted declining ad spend in sectors like FMCG, gaming and direct-to-consumer brands. However, he noted that the introduction of New Tariff Order (NTO) 3.0, enabling inflation-linked subscription price adjustments, had mitigated some revenue pressures.Despite these headwinds, ZEEL's growing viewership in key markets has strengthened its position as India's second-largest entertainment network. Goenka expressed confidence in ZEEL's ability to adapt to a dynamic competitive landscape and achieve robust growth in the future.ZEEL has been facing challenges ever since its planned merger deal with Sony Pictures Networks India collapsed forcing the company to streamline operations and control costs."As expected, the reappointment of Punit Goenka failed to secure the requisite votes, as shareholders are angry that, under his leadership, the company was unable to consummate the merger with Sony. The board should introspect about the company's future and its leadership," said Shriram Subramanian, founder and managing director of InGovern Research Services.On November 18, Goenka informed the board of his decision to step down as MD to focus on operational responsibilities as CEO. Proxy advisory firms, including Institutional Investor Advisory Services (IiAS) and InGovern Research Services, had advised shareholders to vote against Goenka's reappointment as director and MD.In the last one year, the shares of Zee Entertainment have gone down by 48.04%. In the last three and five years, the shares have fallen by more than 50%.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)