Vanik Chairman announces retirement at AGM

W.M. Tillekeratne, founder Chairman of crisis-hit Vanik Incorporation Ltd, announced his retirement at the company's Annual General Meeting (AGM) this week.

Vanik, which has been losing a lot of money and has had its share of troubles for several years, was urged by shareholders for the directors to be replaced. Many irate shareholders were present at the AGM on Thursday and were said to be agitated about the poor performance of the company. They raised the question of cross management of the company as well as the fact that the accounts were not in order.

Shareholders demanded detailed replies to the qualifications made in the report by Ernst & Young, the auditors. Another AGM is expected to be held with all relevant explanations after clarifications and updates can be made. The outgoing Chairman also appointed two new directors who are both former bankers. "At least new blood was infused even though it was unexpected," said a shareholder. It appears the shareholders will adopt a "wait and see attitude."

There was a move to ensure the independence of the auditors, suggested by K.C. Vignarajah, former Chairman of the Ceylon National Chamber of Industries (CNCI) who has advocated for the interests of minority shareholders.

He proposed Ernst & Young be reppointed but recommended that the Directors not be involved in fixing their remuneration. This, he said, is an effort to ensure that the auditors should not be dependent on the controlling interests or the directors for their appointment and fixing their remuneration.