Seylan Bank explains impasse over Share Trusts

Three share owning trust companies of Seylan Bank PLC have been blocked to sell off 12.7 million ordinary voting shares due to court cases filed by six former employees.

Further action in this regard will be called on 28 July where a decision will be taken for settlement action between two parties and to fix a date for hearing. Moreover the appeals by the bank and trust companies for the revocation of interim injunctions will be taken up on 6 December this year.

The share acquisition by the three trust companies established in 1995, 1999 and 2000 were fully financed by Seylan Bank. Both parties are of the opinion that shares held by the trust do not reflect any benefit for the employees thus agreeing to sell and credit earnings thereof to the bank. However the process was halted and the bank will not be able to go ahead with the transfer of disposal of these shares due to the court actions filed by former employees, until a final determination of the court actions materialises.