Chandigarh court restraints Punjab Kings owners from altering board composition amid dispute
A fresh controversy has emerged in KPH Dream Cricket Private Limited, as the Chandigarh court has restrained Mohit Burman, Ness Wadia, and Preity Zinta from altering the composition of Board of Directors until April 19. The court has passed an interim order in a petition filed by another director, Karan Paul, while issuing notices to the respondents to file a reply on the next date. Karan Paul holds a 6 per cent shareholding in the company and has been a director on Board of Directors since January 16, 2009. The other directors include Mohit Burman, who holds 48 per cent, Ness Wadia with 23 per cent, and Preity Zinta with 23 per cent shares in the company.
Karan Paul stated that all directors are bound by Articles of Association (AOA) of the company. He expressed concerns about a grave and imminent threat that Mohit Burman, Ness Wadia, and Preity Zinta are trying to take control of the company. Given the circumstances, he requested that pending arbitration proceedings, the respondents be restrained from appointing any person as an Additional, Non-Executive, or Independent Director of the company.
Furthermore, Karan Paul requested that the respondents be restrained from giving effect to any resolution that may be passed at Extraordinary General Meeting (EGM) proposed to be held on April 21. This is despite the notice convening the EGM, dated March 24, being potentially invalid, illegal, and bad in law. Karan Paul emphasised extreme urgency in the matter, as the company, at the behest of the three directors, is likely to hold EGM on April 21.
The disputes raised in the petition are connected with KPH AOA containing an arbitration clause. The company, incorporated under the Companies Act, 1956, on March 10, 2008, primarily aims to promote cricket and operate as a franchisee of the Indian Premier League (IPL). Since 2008, the company has held an IPL franchise and established, owned, and operated a cricket team known as Punjab Kings.
In a related development, Preity Zinta had previously moved the Chandigarh court against Mohit Burman’s move to sell, dispose of, or create any third-party rights upon his 11.5 per cent shareholding in the company.
