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Kalpitiya Resorts asked to postpone EGM

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The Securities and Exchange Commission of Sri Lanka (SEC) yesterday requested Kalpitiya Beach Resort PLC to postpone the scheduled Extraordinary General Meeting (which was scheduled by the said Company in response to a Directive of the SEC) by another month from the date of scheduled EGM.

“This was to enable the Company to come up with a precise direction on the future course of action on how the Company proposes to safeguard the minority shareholder interests prejudiced by the delays caused in constructing the resort hotel, Citrus Kalpitiya,” the SEC said in a statement.

The statement notes that the SEC made this request from the company after perusing the circular issued to the shareholders of Kalpitiya Beach Resort PLC, in consequence of the above said Directive of the SEC as the SEC was of the opinion that the alternate courses of action stated in the circular to the shareholders lacked specific direction with regard to providing adequate recourse to the minority shareholders in respect of their investment.

“The company by way of a Prospectus issued to the public raised approximately Rupees Two Hundred and Eighty Three Million (Rs. 283 Million) to part finance the construction of a resort hotel within the stipulated period of twenty four to thirty months.   The company gave this undertaking in the Prospectus issued to the public on or about December 2011.   The company has been requested by the SEC that in the event the company is unable to rectify the issues in respect of the construction of the hotel, that it is required to propose a viable alternate scheme to redress the shareholders who have been prejudiced by the failure of the company to carry out its objectives as stated in the Prospectus,” the statement said.

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