Court dismisses action against Country Style Foods

Monday, 28 May 2018 00:00 - - {{hitsCtrl.values.hits}}

The Commercial High Court of Colombo dismissed the action instituted against Country Style Foods Ltd., and its Directors S.W. Alahakoon and D.W.Y Kumanayake by its co-director W.D. Alahakoon under section 224 of the Companies Act No. 07 of 2007 with costs in detailed judgment.

Country Style Foods Ltd. is a well known family business incorporated in 1980, recognised for its manufacture of fruit drinks under the brand name “SMAK”.

The Petitioner claimed that his co directors/shareholders had failed to adopt a long term perspective towards the sustainable development of the Company, that the co-directors/shareholders were acting oppressively towards him, excluding him from major shareholder decisions and that he was locked in as a minority shareholder of the Company.

The Petitioner sought a declaration from court to that effect and prayed for an order from court to direct the Respondents to purchase his shares in the Company or in the alternative an order directing that the Company be wound up.

On 4 April 2018, Ruwan Fernando H.C.J. Judge of the Commercial High Court of Colombo dismissed the Petitioner’s case with costs.

The learned judge rules that was unlawful and unfair for the Court to interfere with the management decisions of the board of directors of a Company or to direct the Respondents to purchase the shares of the Petitioner for that reason.

The learned judge further held that the Petitioner has failed to submit sufficient evidence to prove misconduct by Respondents.

President Counsel Dr. Harsha Cabral with Nishan Premathiratne and Kushan Illangathilake instructed by M/s V.W Kularatne Associates appeared for the Petitioner while Dr. Arittha Wikramanayake with Sachintha Kahandage instructed by Malin Rajapakse appeared for the Respondents.