With Sri Lanka’s capital market watchdog – the Securities and Exchange Commission (SEC) of Sri Lanka announcing the withholding of sale proceeds of Agalawatte Plantations PLC this week, employee representatives all six estates of Agalawatte Plantation say they will oppose the gaining of effective control by the buyer Browns Group till the SEC clears out the imbroglio.
“Nearly all of Agalawatte Plantations PLC employees from all six estates belonging to the Company oppose the illegal takeover of Agalawatte Plantations PLC since SEC has issued a directive withholding the sale. Officials of Pussellawa Plantations Ltd attempted this week to conduct stocktaking of our factories illegally. All employees including the management opposed their actions stating that SEC had issued a directive withholding the sale and that until Browns Group is given the green light by the regulator to take effective control, we would oppose all action to takeover the management and possession by any illegal means,” Joint Employees Union for the Protection of Agalawatte Plantations PLC Convener Lakshman Kumara told Colombo Telegraph.
According to Kumara black flags have been put up in almost all factories and estates and estate workers have opposed the illegal takeover by burning tyres.
He added that all unions of all six estates belonging to Agalawatte Plantations PLC, namely – Pinkanda , Kiribathgala, Noragalla, Wataptha, Niriella and Doloswala, were on standby to resort to further trade union action in the event they continue their illegal attempts.
On July 20, SEC suspended the sale of 15.2 million shares belonging to Agalawatte Plantations PLC by Dr. Chris Nonis, reportedly without due authorization and approval from shareholders.
The directive was issued after Dr. Chris Nonis‘ sister – Ms. Nirmalie Samaratunga and his mother’s sister- Ms. M. J. Varma who jointly held over majority shareholding complained to the SEC that 60.8% of the shares in Agalawatte Plantations PLC held by Mackwoods Plantation Private Limited had been sold by Dr. Chrishantha Nonis, without due authorization and without approval of the shareholders of Mackwoods Plantation Private limited. Agalawatte Plantation PLC belongs to Mackwoods Plantations Private Limited.
“As you are aware, this transaction appears to fall under the category of a major transaction for which shareholder approval needs to be obtained prior to the sale being effected,” the Commission stated in its statement issued by SEC Director General, Vajira Wijegunawardane.
“Pursuant to the said complaint and through the Colombo Stock exchange, the SEC has obtained a copy of the CDS account opening form of Mackwoods Plantation Private limited and note that the two persons authorized to issue instructions are Ms. Shelendra Ranaweera and Mr. Lalith Fonseka, whereas according to the information provided by you to the CSE, the written instruction for the sale of the 60.8% shares of Agalawatte Plantations PLC has been issued by Dr. Chris Nonis.”
The SEC added that it needs to verify whether Dr. Nonis is a duly authorized signatory to issue trading instructions for and on behalf of Mackwoods Plantations Private Limited, in addition to whether the shareholders of Mackwoods Plantations Private Limited has in fact approved the sale of the aforementioned parcel of shares.
SEC stressed that the sale of shares without the due authorization of the owner of the said shares is a matter of grave concern to the SEC as it affects the credibility and integrity of the Securities Market.
Related stories;
Presidential Advisor Chris Nonis Mum Over His Rupees One Billion Heist
Concshell / July 22, 2016
President Sirisena should explain to the public how having that crook Dr. Chris Nonis as Presidential Adviser is compatible with Yahapalana!
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S.Modaya / July 23, 2016
Is he a Dr. at all or a con-dostora?!
Like Sajith Premadasa’s degree from LSE?!
Remember the slug fest between Sajin Vass and Chris Nonis? they were both Mahinda Jarapassa’s boys competing to make dirty money..!
Now, Nonis is Sirisena’s boy because he can speak English! Sad state of affairs in Miracle of Modayas!
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crazyoldmansl / July 22, 2016
Mahikris…now you know how he became the ambassador…birds of a feather…throw him in jail please…
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simon / July 23, 2016
Good for him after the takeover/nationalisation of Sterling Company Mackwoods by SirMao and her trade unions.
Man he is going global than be held by ambude pickings.
just like harry he would move his enterprise to offshore and be done with it.
Sri lanka tea is not the best but the blended variety.
At west end london Mackwoods tea is the connoisseur’s delight. There are still anglo saxons born Ceylon where parents were executives at Mackwoods and left late 70’s.
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Mervyn Silva / July 23, 2016
Only Sajin Vas knew how to treat him. Perhaps he would have been compensated for by rival sisters of Nonis.
Sri Lankan jail is too good for Nonis!
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Upul / July 23, 2016
Did the laws of Sri Lanka change whilst we were sleeping? A company, publicly traded in the Colombo Stock Exchange can be bought by anyone with legal finances, as long as proper disclosures are released to the concerned parties. They being shareholders, creditors and legal authorities. No where are employees part of this information chain.
As a matter of courtesy there may be instances when management informs employees but there is no requirement they do so.
That said, the SEC and CSE should look into the circumstances of this sale because of the other legal issues that have prevailed about Mack woods and other entities owned by the Nonis’.
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arjuna / July 26, 2016
low life thief stealing poor plantation workers money , he will rotten in hell
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Concshell / July 29, 2016
You lack business acumen (of Sri Lankan businesses of course)
True that employees do not belong to anywhere in the information chain. But they are the main component in the operations. So if something that affects the employees affects the business. (In this particular case employees made the factories go dry for four days) In Agalawatte issue it is reported that the new Browns-LOLC management is in a major fix as they were NOT kept abreast of the liabilities of Agalawatte Plantations PLC by dear Dr. Nonis. The Labour authorities are to file action against Nonis for the non-payment of Rs 300 plus owed to government, but what if he absconds without paying back (Similar to what Lalith Kothalawela did)
If the management of your company listed on CSE (hypothetically speaking) sells it to a third party without inter alia settling off EPF/ ETF liabilities, do you still think he should be able to go scot free without any liability what so ever?
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