Commercial High Court issues orders on Asiabike

Saturday, 1 January 2022 01:52 - - {{hitsCtrl.values.hits}}

The Commercial High Court yesterday ordered a forensic audit on Asiabike Industrial Ltd.

The Court also ordered restraining the company from appointing alternate directors, and alienating property.

This was after two shareholders of the company filed an application alleging that the Directors Mohomed Isthihak and Mohomed Nakeeb oppressed other directors and mismanaged affairs of the company.

Asiabike Industrial is one of the largest bike manufacturers in Sri Lanka with access to the European market to export high end bikes bringing much needed foreign reserves to the nation.

The Petitioners alleged that the Managing Director together with the connivance of the rest of Directors of the board have siphoned off monies from the company for the purpose of capital infusion to a similar competing company called ‘Spica Ceylon Limited’, allegedly owned by the Managing Director and his son who is another Director of the Asiabike Industrial.

The Commercial High Court of Colombo issued the Interim Orders restraining the company from alienating any property owned by the company, restraining the company from appointing any new directors to the board and to conduct a forensics audit in the company, after being satisfied with the irregularities in the financial statements of this BOI approved company when they were pointed out by Faiszer Musthapa PC together with Pulasthi Rupasinghe, Mehran Careem and Dananjaya Perera Attorneys-at-Law appearing for the Petitioners.

The matter is to be taken up again on 27 January 2022.