Ceylinco F&G Companies Assets now greater than liabilities: Parties tell SC

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.