Godamunne quitting Hayleys Board

Long standing Independent Non Executive Director L.K.B. Godamunne is the latest member of the Hayleys Board to give quit notice.

The Daily FT learns that Godamunne had informed the Hayleys Board at its meeting yesterday of his intention not to seek a re-election at the upcoming AGM of the diversified blue chip.

   Though classified as Independent and Non Executive, Godamunne as at 31 December, 2010 held 83,790 shares in Hayleys whilst related party Mrs. P.M. Godamunne held 807,447 shares or 1.08% stake.

He is the second member of the Board to decide against re-election. Last month Hayleys announced Trevine Jayasekara another Independent Non Executive Director who is the Chief Financial Officer of Brandix Lanka will not be seeking re-election.

Both moves apparently follow Hayleys controlling shareholders reportedly not being overly happy with some of the old directors in Hayleys Board. Current BOI Chairman Jayampathy Bandaranayake quit much earlier citing pressure of work though he continues to serve a few other Boards including as Non Executive Chairman of Ceylon Tobacco.  The other remaining independent director is A.M. Senaratna who was appointed to the Board in 2005 and currently resides in Canada.

Business tycoon Dhammika Perera together with related party Royal Ceramics own slightly over 30% stake in Hayleys. Despite market’s sharp gain yesterday Hayleys share price dipped by Rs. 2 to Rs. 390 whilst on Monday it dipped by Rs. 7, largely on account of the impact of Rs. 800 million loss at Hayleys MGT over what is dubbed as the biggest fraud in a listed manufacturing entity that had taken place for several years.

Godamunne was appointed to the Hayleys Board in 1998 whilst he also serves on subsidiaries Haycarb and Hayleys Exports.

He was a former Country Director of United Nations World Food Programme in 1995 and was a former Secretary General and Member, Board of Directors of Mahaweli Authority of Sri Lanka.