Following Wednesday’s stormy Extra Ordinary General Meeting (EGM) of Hunter and Company Ltd where shareholders accused the directors of not being independent, the board decided to convene a second EGM to clarify accounting issues.

The furore came a few weeks after the company asked the auditors Ernst & Young to step down in a dispute over disclosure in the 2006-2007 accounts. (See page 9). The EGM was held at the request of T.T. Al Nakib, a shareholder of the company (with 15.58 percent) to seek an explanation from Hunter’s directors concerning a Rs. 2.5 million cheque and also on director’s remuneration.

Cubby Wijethunge, a business leader is the chairman while L.R.P. Dossa, daughter of former Finance Minister Ronnie de Mel together with two other directors sit on the board at Hunters. Mrs. Dossa is the Managing Director with 70.31 precent shareholding in the 97 year-old company.

On camera
The EGM began with Hunters' having instructed to video the proceedings. Some shareholders were amused saying this may be the first time they are on camera. Mr. Wijethunge explained the Rs. 2.5 million accounting entry, saying it is recorded under administrative expenses in the company annual report, but Mr. Nakib and Mr. K Vignarajah, who is also a shareholder, insisted the explanation was not sufficient.
A vociferous and agitated Mrs. Dossa demanded to know how Mr. Nakib possessed a copy of the cheque issued by Hunters in favour of Mahesh Gajanayake, the former Financial Controller.

As the EGM progressed, Mr. Vignarajah accused some directors of not being independent to which Mrs. Dossa promptly shot back, "Just like you are not being an independent shareholder." She demanded to know how Mr. Nakib possessed a copy of Rs. 2.5 million cheque, as it was company property. She further said," The company is another legal entity. It is not mine, nor yours, do you understand?"

When Mr. Nakib insisted the cheque came to him in the post, Mrs. Dossa (still shouting) refuted the statement, saying, "Cheques don't come by post! Not in Sri Lanka!" Mrs. Dossa accused Mr. Nakib of mopping up shares.

War of words
Mr. Nakib and Mrs. Dossa were seen having a war of words constantly, so much so that a shareholder raised questions about their conduct. "The conduct between the shareholders and directors is very ugly;" he said. Another shareholder was curious to know how company documents 'disappear' and 'appear' with those not working in the company. When Mr. Nakib wanted an explanation on the Rs. 2.5 million cheque, at one point Mrs. Dossa demanded, "Explain how you got it".

Mr. Nakib remarked that Mrs. Dossa is 'disgusting' to which she said, "You are not here to tell me how I behave. You are disgusting to me." When Mr. Vignarajah started to speak, she snapped, "When did you become a shareholder? Why are you so concerned about the company?"

To this he replied, "Where I come from or where my house is none of your business. I am a shareholder and I am entitled to speak." S.M. Fernando, an independent director at Hunters requested Mr. Nakib to make a complaint, if he thinks that someone has embezzled Rs. 2.5 million of the company money. Mr. Wijethunga then insisted that there has been no embezzlement.

All in the mind
Mrs. Dossa also insisted that there is no wrongdoing. "That is all in your mind!" There was some verbal thuggery also displayed at the stormy EGM. However Mr. Wijethunga intervened and requested the intimidators to stop harassing shareholders. Mr. Nakib promised to apologise if he was wrong and requested the Hunters' board to call for an audit.