Commercial High Court issues interim orders against AsiaBike Industrial Directors

By Lakmal Sooriyagoda 
The Colombo Commercial High Court has issued interim orders against the directors of Asiabike Industrial Limited, who have allegedly mismanaged the funds of the company referred to in the petition.    

Asiabike Industrial Limited is one of the largest bike manufacturers in the country, with access to the European market to export high-end bikes, bringing the much-needed foreign exchange to the nation. 

The two petitioner shareholders of Asiabike Industrial Limited had alleged persisting mismanagement and oppressive conducts of the board of directors of the company to the detriment of the interests of the company as well as its shareholders. 

The petitioners alleged that the managing director together with the connivance of the rest of the directors of the board has siphoned off monies from the company for the purpose of capital infusion to a similar competing company called Spica Ceylon Limited, allegedly owned by the managing director and his son, who is another director of Asiabike Industrial Limited. 

The Commercial High Court of Colombo issued interim orders restraining the company from alienating any property owned by the company, restraining the company from appointing any new directors to the board and to conduct a forensics audit in the company, after being satisfied by the submissions made by Faiszer Musthapa, PC together with Counsel Mehran Careem, Pulasthi Rupasinghe and Dananjaya Perera appearing for the petitioners. 
The matter is to be taken up again on January 27, 2022.