Chris Nonis wants SEC to withdraw directive on plantation company stake sale

In a strongly worded response to the directive issued by the Securities and Exchange Commission on 20 July, regarding the sale of 60.8% shares of Agalawatte Plantations Plc, Chairman of Mackwoods Plantations Ltd. Dr. Chrishantha Nonis pointed out that the transaction was carried out with due authorisation and instructions being issued to the stock broker. 



The action by the SEC in issuing a directive on a complaint made by non-shareholders, without making any formal inquiries into the matter, is highly questionable, he says. The sale of Agalawatte shares was completed on 14 July 2016 and six days after the share transaction was concluded, the SEC on 20 July issued a directive stating that shareholder approval had not been obtained.

The stock broking firm has informed the SEC that the contents in the directive are incorrect in that the instructions received were not only from Dr. Nonis but also from Shelendra Ranaweera and Lalith Fonseka, information which was available to the SEC. 

The letter further states that the SEC should not interfere in the internal affairs of Mackwoods Plantations Ltd, and requests that it withdraws its allegations.