Asset Radio’s Rights Issue blocked by Court

Monday, 21 March 2011 00:46 -     - {{hitsCtrl.values.hits}}

By S.S. Selvanayagam

Western Province High Court issued an Interim Order preventing the Asset Radio Broadcasting Ltd. which operates FM Radio from issuing/registering any shares or taking any further action in connection with the rights issue of shares.

High Court Judge Mahinda Samayawardane also issued another Interim Order preventing in any way or manner taking any step in connection with and/or consequent to the rights issue of shares including voting and/or permitting any voting on the purported rights shares and/or from holding out in any manner whatsoever that the said shares form part of its equity capital.

Court made these orders sequent to the litigation initiated by Lak Asia Holdings (Pvt) Ltd and Sanka Kanchana Wasala Liyanage of Kandy who is presently residing in Australia.  Petitioners claim that they are shareholders of the said Company, holding together 50% of the stated capital of the company. They cited the Asia Asset Radio Broadcasting (Pvt) Ltd, Nihal Seneviratne Epa who is purported to be a director and the chairman of the board of directors of the company, Lasantha Joseph Milroy Peiris and Businessmate (Pvt) Ltd. as respondents.  They stated that Nihal Seniviratne Epa controls 50% of the capital of the company and a former shareholder Milroy Peiris continues to be a director of the company. Petitioners alleged that their lawful demand to be appointed as directors of the company was wrongfully and unlawfully refused and not complied with.