Shareholder's action against Hunters dismissed

The Supreme Court delivered judgment in favour of Hunter & Co, dismissing the action of petitioner-appellant shareholder Al Nakib, in terms of Section 210 and 211 of the Companies Act no 17 of 1982, with costs fixed at Rs. 50,000.

The action was filed by Al Nakib against Hunter & Co. Directors alleging that Hunter & Co. had not disclosed the value of the company's Lanka Canneries property in the Company's Annual Reports of 2001, 2002 and 2003.

The appellant said that had this information been available to him at the time of the Rights issue on May 9, 2003 he would have purchased many more shares. The Court held that the appellant had got his full entitlement of shares at the Rights issue, and that there was full disclosure by Hunter & Co. about the value of the assets acquired from Lanka Canneries Ltd. Previously, Al Nakib lost the case in the Colombo High Court.

Al Nakib had earlier filed a fundamental rights case against the SEC and the CSE with Hunter & Co. also being one of the seven accused and that petition too was dismissed.