Sri Lanka’s biggest insurer maintains court approved business segregation
EconomyNext – Ceylinco Insurance, Sri Lanka’s biggest insurer, has maintained it went ahead with segregation of its life and general insurance business as ordered by the regulator with court approval.
The firm Wednesday told the Colombo Stock Exchange shareholder approval for the segregation was not needed because it was approved by the Commercial High Court.
It said the Commercial High Court dismissed an objection by Global Rubber Industries (GRI), a big shareholder, that Ceylinco Insurance’s segregation of its life and general insurance business needed shareholder approval.
GRI Tuesday alleged Ceylinco employees had assaulted shareholders at a special shareholder meeting called to seek more information about the segregation.
Global Rubber Industries is the second largest shareholder of Ceylinco Insurance with 22.86 percent of the voting rights of the insurer.
The firm, a manufacturer and exporter of solid tyres, has filed two cases against the management of Ceylinco Insurance over its decision to transfer all its insurance business to two separate subsidiaries without shareholder approval and accusing Ceylinco directors of siphoning out funds.