Company law obligations of directors in a listed company

The directors of listed companies play a significant role in ensuring the company’s prosperity by directing the company’s affairs whilst meeting the interests of its shareholders and stakeholders.

 In addition, the law imposes a number of duties and responsibilities upon directors, which will enable them to manage their companies efficiently and effectively in achieving corporate objectives.

Considering the importance of addressing the role of director in relation to the provisions in the Companies Act, the Securities and Exchange Commission of Sri Lanka conducted a seminar titled ‘Company Law Obligations of Directors in a Listed Company’ last week at Cinnamon Lakeside Colombo.

Nithaya Partners Partner Naomal Goonewardena made the key note speech which was followed by a panel discussion consists of eminent corporate sector professionals including Securities and Exchange Commission of Sri Lanka Chairman Dr. Nalaka Godahewa, Hatton National Bank MD/CEO Rajendra Theagarajah, Sri Lanka Institute of Directors Chairman Ronnie Peiris and Securities and Exchange Commission of Sri Lanka Director General Prof. Hareendra Dissabandara.

Goonewardena in his presentation, highlighted few areas where directors of listed companies should be aware of including pre-emption rights, prospectus requirements, solvency tests, repurchase of shares and reduction of stated capital.

Ronnie Peiris and Theagarajah also shared their experiences pertaining to the said areas while Prof. Dissa Bandara expressed his opinion on the Corporate Governance aspects of listed companies in Sri Lanka. Over 200 directors and senior officials in the corporate sector attended the program.