The Securities and Exchange Commission (SEC) is planning to write to Kalpitiya Beach Resorts (REEF) following their latest disclosure to the Colombo Stock Exchange (CSE) on plans for Kalpitiya project, sources said. The latest letter pertains to the attendance at its recent Extra Ordinary General Meeting (EGM) on 19 June held to seek shareholder’s approval [...]

The Sunday Times Sri Lanka

SEC to question Kalpitiya on latest EGM

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The Securities and Exchange Commission (SEC) is planning to write to Kalpitiya Beach Resorts (REEF) following their latest disclosure to the Colombo Stock Exchange (CSE) on plans for Kalpitiya project, sources said.

The latest letter pertains to the attendance at its recent Extra Ordinary General Meeting (EGM) on 19 June held to seek shareholder’s approval for the implementation of the alternate plan as set out in a June 1 circular to shareholders. The company in an announcement said that the Ordinary Resolution set out in the Notice of Meeting in regard to the alternate plan was unanimously adopted by the shareholders on the 1st.

“The SEC wants to find out if shareholders other than those who own over 70 per cent of REEF were in attendance for the 19th EGM,” a source said, adding that the regulator is extra careful with this company as it is being probed.

The June 1st letter to shareholders said the company is cosnfident that it has the necessary resources to complete construction of such a development by June 2017 and is of the view that, in the event the Government and the tourism authorities come up with a definitive plan and timeline for the Kalpitiya development, the company will “dove-tail” this development into a development akin to what is set out in the prospectus.
This this the second EGM after the SEC requested Kalpitiya Beach Resort PLC to postpone an earlier EGM in order for the company to decide on a proper future course of action.

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