Aug. 16 Shareholder Vote Ordered in 'Consipio v Private'
, District Court Judge Elizabeth Gonazalez has issued an order responding to the plaintiffs' motion submitted late last month seeking an expedited time frame for a new Board of Directors election by Private shareholders. The plaintiffs’ motion as well as an opposing motion by the defendants was filed in response to an order issued by Judge Gonzalez June 20 that ordered Private, among other things, to “immediately notice a shareholder's meeting at which [Private] will elect a Board of Directors.”As reported by AVN at the time, the June order came on the heels of a months-long effort by the court to determine the whereabouts of 3,950,000 shares of common Private stock that were supposed to have been handed over to Consipio as collateral on a debt of at least $2 million that Private defaulted on in March 2008, according to the court.
The latest order, filed July 1, followed a June 28 hearing in court by the parties to provide supporting the parties’ competing motions regarding the shareholder election.
Plaintiffs had requested that the special shareholder meeting take place July 8, that the record date for the meeting be set on June 2, that a special meeting of the Private Board of Directors take place June 28, and that Private be compelled to issue shares allegedly owed to Sureflix Digital Distribution as part of the deal it struck to acquire the gay properties in 2009.
After reviewing the motions and considering the arguments of counsel, Gonzalez ordered that the annual meeting of Private’s shareholders on or before August 16 at Private’s Barcelona, Spain headquarters with a live video-conference connection to the Las Vegas offices of plaintiffs’ counsel, Lionel Sawyer & Collins, and that “shares in street name with the disclosure of Ultimate Beneficial Owners (i.e. those investors who paid for and dispose of, the shares) of those shares along with any voting instructions provided by that ultimate beneficial owner shall be entitled to cast votes (in person or by proxy) at the Shareholders Meeting.”
The judge further ordered that Private provide appropriate notice of the meeting consistent with SEC requirements and that relevant materials and voting instructions be sent to shareholders that reiterate the voting requirements elaborated above.
“It is incumbent upon the Board of Directors,” wrote Gonzalez, “to develop a voting instruction form that will adequately identify the Ultimate Beneficial Owners, as defined herein.
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LAS VEGAS—In the Nevada version of Consipio v. Private, District Court Judge Elizabeth Gonazalez has issued an order responding to the plaintiffs' motion submitted late last month seeking an expedited time frame for a new Board of
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