NDB Directors asked to show cause

LITIGATION: Commercial High Court Judge K. T. Chitrasiri on February 23 made order on the Chairman and the board of directors of National Development Bank to show cause as to why they should not be removed from the position of Chairman and directors of NDB in respect of the accusations made against them by the shareholders the petitioners in case No. 1/2006 (2).

Four Petitioners namely D. Schaffter, National Insurance Corporation, Janashakthi limited and People's Venture Investment, as shareholders of NDB instituted the said action against the Chairman and the board of directors and the secretary namelyS. K. Wickramasinghe, Nihal Welikala, Hemaka Amarasuriya, Sriyan Ranith de Silva, Lal de Mel, Gamini Wijeyesinghe, Anthony Ranjith Gunasekera, Alessandro Pio, U. L. kadurugamuwa, S. T. Nagendra and Mrs. C. I. Jayawardena alleging mismanagement and improper conduct of the activities and the management of NDB.The petitioners also alleged that the said directors were carrying on activities of NDB in an oppressive manner.

The petitioners alleged that most of the Directors held no shares in NDB and that Wickremasinghe held 300 shares, Amarasuriya 3,950 shares, Lal de Mel 10,300 shares and Gunasekera 500 shares and none of the other Directors had any shares.Romesh de Silva, PC with N. R. Sivendran and Eraj de Silva on the instructions of Murugesu and Neelakandan appeared for the petitioners. K. Kanag-Iswaran, PC with Avindra Roderigo and Suresh Peter instructed by F.J. and G. De Sarams appeared for the directors and secretary of NDB.