Colombo Stock Exchange silent on Touchwood winding up
The Colombo Stock Exchange (CSE) is yet to be officially informed either from Touchwood Investments PLC or the Securities and Exchange Commission (SEC) of a court directive, a week ago, to liquidate the forestry management company.
The Commercial High Court order was made on June 5 but there has been no stock exchange filing – as required – regarding the case concerning a publicly listed company whose share trading was earlier suspended. SEC officials were not available for comment when contacted.
On Friday, Sudath Kumar from Nanayakkara & Co was appointed as the liquidator for winding up Touchwood Investments. The liquidator is to issue a newspaper notice on Tuesday detailing out the winding up process while informing the Registrar of Companies of the court order.
According to court records, the present management and directors would cease to have any control over assets of the company and any powers to continue the business of the company. It was also stated that any transactions that take place since the filing of the winding up petition would be null and void and any transactions that have already taken place would have to be reversed.
The court order which was released on Friday says that not a single shareholder or any other person had objected to the application of the petitioner in the Touchwood winding up case.
The Order further states that “Even though the company states that it has Rs. 3 billion worth assets in excess than the liabilities no documents were adduced in evidence to establish that fact and therefore company’s claim which states that its assets exceed the liabilities, confines only to that statement.”
Meanwhile, Touchwood Stakeholders Association co-ordinator and lawyer Lakshan Dias has been working with another group of Touchwood depositors to discuss the latest situation and both have agreed to hold a joint meeting next Friday.