The shareholders filed a motion Oct. 8 in Nevada court seeking to confirm that they will have the right to vote the shares pledged as collateral for the Slingsby guaranty of the note and the balance due from Private; require Private to provide Bunimovitz with daily cash reports from July 20 to the present on a daily basis going forward; and appoint an independent inspector to monitor the election of directors at the annual stockholder meeting.
The judge, in his ruling Oct. 14, said the shareholders will have a right to vote all of the shares unless a New York court rules to the contrary and granted their motion to have Private provide daily cash reports but denied the request for an independent contractor, saying the court would be available to resolve any disputes.
The shareholders claim the shares of common stock are the subject of a pledge agreement executed in favor of the stockholders by Slingsby Enterprises, which is controlled by Private’s current CEO Berth Milton, to secure certain indebtedness.
In May, Private’s stockholders filed action in New York Supreme Court against Private and Slingsby to enforce their payment obligation.
The shareholders, in their amended report, said Private failed and refused to cooperate in transferring to itself $1.65 million shares of the common stock to which shareholders hold a certificate under the pledge agreement.
Slingsby filed a motion to dismiss the New York action on grounds that enforcement of Slingsby’s guaranty and the pledge agreement are barred by a six-year statue of limitations under New York law.
A hearing has been set in a New York court Nov. 8 to consider Slingsby’s motion to dismiss.