Chennai: BCCI President-in-exile N Srinivasan led India Cements' board on Wednesday approved transfer of IPL team CSK to a wholly-owned subsidiary Chennai Super Kings Cricket Ltd.
A decision to this effect was taken at a Board meeting of the company held here.
"...Pursuant to the decision of Board of Directors of India Cements Ltd, the company transferred the IPL franchise rights to its wholly-owned subsidiary Chennai Super Kings Cricket Ltd," Srinivasan told reporters after the meeting.
He further said: "The Board considered a proposal for reorganisation of Chennai Super Kings Cricket Ltd under which ownership of the franchise will be issued to the shareholders of India Cements Ltd, subject to necessary approvals."
Srinivasan, who has been barred by the Supreme Court from contesting any polls of the board till he gave up ownership of the IPL team, did not specify who would be at the helm of Chennai Super Kings Cricket Ltd and details of its main functionaries.
"This is the first step in slowly getting into a fully cement focussed company," he said, declining to comment on on how the new subsidiary would be capitalised.
He also refused to comment on anything related to Court orders or to BCCI on the issue.
Last week, the company had informed BSE that it would transfer its IPL team CSK to the new subsidiary, Chennai Super Kings Cricket Ltd (CSKC),
Already the company has completed the required documentation for the transfer and its meeting today was called to consider reorganisation proposals relating to the subsidiary, CSKC.
Earlier on September 26, 2014, the Board of Directors of the company had approved the proposal to demerge Chennai Super Kings (CSK) into a wholly-owned subsidiary of the company, by transferring its net assets at cost.
It had stated that the effective date of transfer will be January 1, 2015.
Last month, a Supreme Court bench of Justice T S Thakur and Justice F M I Khalifulla had assailed the amendment in BCCI rules permitting cricket administrators like Srinivasan to have commercial interest by owing teams in IPL and Champions League and said it was bad on grounds of conflict of interest.
The apex court directed that BCCI elections be held in six weeks "subject to the condition that no one who has any commercial interest in the BCCI events (including N Srinivasan) shall be eligible for contesting the elections for any post whatsoever".
The rider in the judgement would make it probably difficult for Srinivasan to become the BCCI President, unless he quickly relinquished his interest in the CSK.