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21 January, 2015 09:28 AM Source: Financial Times - Sri Lanka
Ceylinco Insu.png

The battle between Ceylinco Insurance PLC and minority shareholder, Global Rubber Industries (GRI) took an ugly turn when an Extraordinary General Meeting (EGM) of the company devolved into fisticuffs yesterday.
A minor employee of Ceylinco Insurance who was allegedly bitten during the confrontation has been hospitalised along with a GRI employee in the aftermath of the brawl. Both sides have since lodged complaints with the Police in regard to the altercation.

Yesterday’s EGMs were convened at the request of GRI in order to seek further information on the proposed formation of two separate subsidiaries for Life and General Insurance, a move which would change the role of Ceylinco Insurance PLC into that of a mere holding company.
GRI, which currently holds a collective 29.9% of the voting shares of Ceylinco Insurance PLC, had raised concerns over the model of segregation to be followed by the company and its potential impact on the value of minority shareholdings via several resolutions which were to be tabled at the meeting.
The dispute was reportedly sparked off following a special announcement made by Ceylinco Insurance Chairman Godwin Perera prior to the resolutions being tabled. Citing a Court order which purportedly grants approval for the transfer of the assets, liabilities and business of the company into two fully-owned subsidiaries, Perera had told the gathering that further consideration of the resolutions proposed was therefore unnecessary.
Accounts of proceedings differ at this point, with a spokesperson for Ceylinco Insurance alleging that a few shareholders had thereafter resorted to unruly behaviour and attempted to assault the Company Directors.

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