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Mackwoods accuses SEC of interference in its internal affairs
View(s):Mackwoods Plantations (Pvt) Ltd has accused the Securities and Exchange Commission (SEC) of “… interference in the internal affairs of the Company, its Board and its Shareholders,” over this week’s decision to suspend the sale of a Plantation stake in the Company.
The SEC suspended the July 14 sale of Agalawatte Plantations to Browns, and in a July 20 announcement said it was probing the sale to ascertain the transaction had received the authorised approval of the Board. (See Business Times for story)
“Whilst the Board of our Company, including myself, is shocked and surprised by your actions, it evinces clearly that any purported investigation by you will not be fair and judicious,” Company Chairman Chris Nonis said in a July 21 letter to SEC Director General Vajira Wijegunawardane. Dr. Nonis said the sale of Shares held by Mackwoods Plantations (Pvt) Ltd in Agalawatte Plantations PLC took place consequent to due authorisation and instructions being issued to the stockbroker.
“It is surprising that you have entertained and acted on baseless and frivolous complaints from Ms Nirmali Samaratunga and Ms Jean Varma who are not Shareholders of either Agalawatte Plantations or Mackwoods Plantations (Pvt) Ltd. It is also surprising that you are claiming this is a major transaction, that it has been done without due authorisation and without the approval of Shareholders,” the letter, a copy of which obtained by the Sunday Times, said.