Sri Lanka’s SEC Chief, Dr. Nalaka Godahewa request the directors of listed companies to be impartial and work towards the interests of the firm, while warning tough action would be taken against violation of rules.
“As you are aware it is the duty of every company director to act in good faith and in the interests of the company”, Godahewa told in Colombo this morning while addressing a symposium on regulatory compliance.
“Irrespective of who nominated you to the Board, once you assumed duties as a director you no longer represent the interests of those who nominated you, but the interests of the company”, he further said.
He says a a director of a public listed company must be conscious that he is responsible towards a large number of shareholders.
“By looking after the interests of the company you are actually looking after the interests of all shareholders”, he added.
Godahewa warns if the Board of Directors do not fulfill their responsibilities to the satisfaction of the shareholders, even a minority shareholder can sue the company for mismanagement and seek relief.
The symposium on regulatory compliance was held to create awareness about the latest regulations introduced by the SEC primarily to company secretaries, compliance officers, registrars and auditors of listed firms.