8 July 2023 12:00 am Views - 223
By Lakmal Sooriyagoda
The Supreme Court has been informed by the parties that the assets of Ceylinco F&G Companies are now greater than its liabilities.
President’s Counsel Faizer Mustapha appearing for the fifth and sixth respondents moved court to reconsider the decision to grant 100% of the deposits and not to sell the properties of companies to ensure some credibility for the depositors until they get their investment. He made these remarks when the Fundamental Rights petition filed on behalf of the depositors attached to Ceylinco F&G Companies was taken up before the Supreme Court.
The Supreme Court observed, and time frames were given according to the Company Act to take necessary steps in accordance with the laws. Representing the independent Associates of depositors, Senior Counsel Ian Fernando brought to the attention of the Supreme Court that there are no balance sheets on record from 2008 and also no final accounts thereon. Therefore to avoid any prejudice for the depositors and to calculate the actual present value of shares, balance sheets and final accounts should be prepared. Fernando also pointed out that there is a court order preventing the transfer of properties in 2009 and also the properties transferred after 2009 considered null and void. This matter is to be taken up again on July 12.
Several parties including a Depositors’ Association attached to Ceylinco F&G Companies had earlier informed the Supreme Court that the Rs.4 billion assets belonging to the Ceylinco F&G Companies in 2009, have now been increased up to Rs.9 billion, with the effluxion of time.
Senior Counsel Ian Fernando appeared for Independent Associates of Depositors with the instructions of Derek Fernando Associates. Chandaka Jayasundara PC appeared for the directors of the 5th and 6th Respondents appointed by the Supreme Court. Faizer Mustapha PC for the 5th and 6th Respondents.