From deposits to shares

1) Golden Key depositors to get shares instead of money  2) Deal to float a new public company struck at meeting with President  3) Fresh move to be presented to Supreme Court for approval

Golden Key (GK) depositors are seeing light at the end of the tunnel with an agreement to form a public limited company with shares given to them.The decision was reached following discussions with President Mahinda Rajapaksa at Temple trees yesterday morning. During the meeting that was held with the depositors it was agreed that a new public limited company would be formed under the Companies Act and that its shares would be divided up between the depositors.The President’s Media Division releasing a media statement noted that the assets of the Golden Key Company would be transferred to the new public limited company and that the depositors would be made shareholders. 

“Accordingly, a company by the name of GKCG Special Purpose Vehicle (Pvt.) Ltd. is to be formed where the GK company assets will be transferred and shares allocated in proportion to the deposits,” the statement said adding that the new company would manage the assets of the shareholders.

A board of directors and panel of advisors representing the shareholders would be appointed to the company and they will continue to manage the functions in a professional manner. “The main focus of the company will be to address the issues of the depositors by creating profits and value that can give direct returns to shareholders,” the press statement explained.

This plan is to be presented to the Supreme Court for approval and the Central Bank has been appointed as the facilitator for the process.

The initial strategy is to realise personal assets of J. L. B Kotelawala and other directors of the companies and pay back to the Security Deposit holders. This is presently being done via Supreme Court Orders and implemented by the Committee of Chartered Accountants.

President’s Secretary Lalith Weeratunga, Attorney General Mohan Peiris and Central Bank Governor Ajith Nivard Cabraal were present at the meeting with the Golden Key Depositors Society and President Mahinda Rajapaksa.

(By Uditha Jayasinghe)