Court halts Energizer Lanka winding-up EGM

Friday, 20 February 2015 00:43 - - {{hitsCtrl.values.hits}}

Some of the minority shareholders of Energizer Lanka Ltd., who are all Sri Lankans and Sri Lankan entities, successfully moved the High Court of the Western Province (exercising civil jurisdiction) to issue an interim order stopping a scheduled Extra Ordinary General meeting (EGM) of the company on 19 February. The main item on the agenda for this meeting on 19 February was to consider and if thought fit to pass a resolution moved by the majority of the Directors to wind up the company. While the first respondent in the case was the locally-incorporated Energizer Lanka Ltd., the 8th Respondent was Energizer International INC, an American-based multi-national company. Approximately 84% of the shares of Energizer Lanka are held by the 8th respondent Energizer International INC. The primary business of the company is the manufacturing and marketing of Energizer batteries and it is said to be the market leader in the battery industry in Sri Lanka. In addition, the company also markets products such as flashlights and personal care items like shaving razors. It is said the company employs around 70 persons in Sri Lanka. This is a case that would be observed with interest as it involves the question of the rights of minority shareholders (in this case holding less than 15% of the shares of Energizer Lanka Ltd.) and allegations of oppression of minority shareholder interest. The company had gone in for a rights issue only in 2010, to which several Sri Lankan minority shareholders had subscribed. S. Parathalingam PC with Nishkan Parathalingam AAL instructed by Varners appeared for the Petitioners (minority shareholders).

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