Zahida Rizvi
Seylan Bank, has failed to dissolve the share owning schemes before March 1, 2015.A Colombo Stock Exchange statement listed the reasons as to why the Bank did not meet with the said requirements.
Six share owning trust companies were established in 1995, 1999 and 2000 which have acquired shares of the Bank from time to time at the market prices prevailed at that time. The Bank was the Settlor of the trusts and the purchase of the shares were fully funded by the Bank. These six trust companies currently hold a total of 12,752,994 shares of the Bank's Ordinary (Voting) Shares. These shares are the subject matter of Court actions where the contention of the Bank and the Trust Companies is that the shares which are held in the Trust Companies are not being held for the benefit of employees and consequently the shares need to be sold and the proceeds credited to the Bank.
The Companies will not be able to dispose of or transfer these shares until the final determination of the Court actions as there are interim injunctions which have been issued by the District Court preventing each of the above trust companies from transferring the shares held.
Therefore, the Bank is not in a position to comply the Listing Rules of the CSE until final determination of the said court actions.
www.dailynews.lk
Seylan Bank, has failed to dissolve the share owning schemes before March 1, 2015.A Colombo Stock Exchange statement listed the reasons as to why the Bank did not meet with the said requirements.
Six share owning trust companies were established in 1995, 1999 and 2000 which have acquired shares of the Bank from time to time at the market prices prevailed at that time. The Bank was the Settlor of the trusts and the purchase of the shares were fully funded by the Bank. These six trust companies currently hold a total of 12,752,994 shares of the Bank's Ordinary (Voting) Shares. These shares are the subject matter of Court actions where the contention of the Bank and the Trust Companies is that the shares which are held in the Trust Companies are not being held for the benefit of employees and consequently the shares need to be sold and the proceeds credited to the Bank.
The Companies will not be able to dispose of or transfer these shares until the final determination of the Court actions as there are interim injunctions which have been issued by the District Court preventing each of the above trust companies from transferring the shares held.
Therefore, the Bank is not in a position to comply the Listing Rules of the CSE until final determination of the said court actions.
www.dailynews.lk
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