SEC, CSE urged to cancel delisting of Ceylon Oxygen shares

A top investor and shareholders’ rights advocate this week urged that the Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE) should take steps to cancel the delisting (from the CSE) of Ceylon Oxygen “and afford a free market for the shares, especially as all shareholders (other than the directors) disputed the valuation.”

K.C. Vignarajah, said in a letter, that any action that would frustrate this, would be against the public interest as well as those of the independent and minority shareholders.

In a letter to the secretaries to the company, SSP Corporate Services (Private) Limited referring to the Ceylon Oxygen Ltd AGM & EGM meetings held on May 30, he said:

“Good corporate governance, as well as the necessity for the Secretaries of the company to be truly independent and record the full proceedings of the above meetings accurately, was emphasized in my discussion with (an officer at SSP). This is an absolute necessity in regard to ensuring the confidence of investors in the functioning of the companies, in the system of checks and balances by professionals within and without, and in the good functioning of the share market.

I also requested a copy of the minutes of the meetings, a list of all shareholders with their addresses, telephone numbers where available, and the number of shares held by each of them, and a list of the names of shareholders who attended the meetings.

I was rather surprised, when she (the officer) stated that you needed permission of the Directors of Ceylon Oxygen Ltd, to even give me the list of shareholders who attended the meetings. I am sure of the need for company secretaries to be able to act with transparency and independence, especially when rights of all shareholders need to be upheld.”