Feb 23 (LBO) – The Commercial High Court on Thursday rapped NDB Bank’s top brass over allegations of mismanagement, asking for cause as to why they should not be removed.
-LBO Newsdesk: LBOEmail@vanguardlk.com
The court order asks the Chairman and Board of Directors of National Development Bank (NDB) to show cause as to why they should not be removed and the Board reconstituted.
Petitioners and shareholders Janashakthi Limited, National Insurance Co-operation and People’s Venture Ltd, have alleged mismanagement and improper conduct by NDB’s Board.
The petitioners have alleged that NDB’s directors collectively hold less than 0.03 percent or 15,050 shares in the Bank and therefore are in ˜forceful control’, while major shareholders are not represented.
They have also accused the Chairman and Directors of spending Bank funds on litigation.
The legal battle also questioned NDB’s sale of a 25 percent controlling interest in Hayleys MGT Knitting Mills Limited at less than market prices.
The petitioners allege that the Directors without informing shareholders had sold the stake for Rs.