Tel Aviv District Court Judge Varda Alshech today sentenced Emblaze Ltd. (LSE: BLZ) founder and chairman Eli Reifman to 45 days in jail for contempt of court. He has refused to comply with a court order to hand over his 39 million shares in the company to the special manager of his assets, Adv. Eitan Erez. Erez asked for the order. The shares are worth NIS 94 million.
Judge Alshech ruled that if Reifman has not handed over the shares after the 45 days, he will be imprisoned for two days for each day that he is in violation of the court order.
Judge Alshech gave Reifman a 24-hour grace period to comply with the order and to appeal the ruling to the Supreme Court.
In his testimony, Reifman said that the registration of the shares was complicated, and that he is in the midst of a power struggle, which has lasted for three years. He said, "Share purchases are being made on my behalf in ways which will prevent hostile elements, who want to take over the company from getting the shares."
Emblaze's share rose 0.8% by mid-afternoon on the London Stock Exchange to ₤0.39.
Published by Globes [online], Israel business news - www.globes-online.com - on September 7, 2009
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