bollywood actress preity zinta
Before the mega auction of Indian Premier League (IPL), all is not well in the franchise (KPH Dream Cricket Private Limited). The company's co-owner and actress Preity Zinta has reached the court. She has filed a case against the company's co-owner Mohit Burman in Chandigarh District Court.
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In the petition, he has demanded a ban on selling Mohit Burman's 11.5 percent shares to anyone else. The court has issued a notice to Burman in this matter. Also, the next hearing of this case will be held on August 20.
Four shareholders have shares
According to the petition, the company has four major shareholders. Burman has the largest share of 48% in KVH. While Preity Zinta and Ness Wadia have 23-23% stake. While the remaining shares are with the fourth shareholder Karan Paul. According to the petition, Preity Zinta says that Mohit Burman is talking about selling 11.5% of his share to some other party.
Preity Zinta during an IPL match. (File photo)
This is the argument given in the petition
Preeti has filed a petition under the Arbitration and Conciliation Act 1996 seeking to stop Burman from selling these shares. It states that any shareholder can sell his shares outside the group only when the other shareholders do not sell those shares.
You are refusing to buy. This has not happened in this case. The rest of the shareholders have not refused to buy these shares. Burman has also refused to sell his shares. Punjab Kings has also not issued any official statement on this.
Article 19 used
Zinta highlighted Clause 19 of the bylaws of the association, which deals with the right of first refusal (ROFR) of existing investors. The court said that after initially offering to sell the stake, Burman backed out. But discussions for the deal with the US company are continuing.