Qualified daughters make their way to boards

The appointment of tycoon Harry Jayawardena’s daughter to the Board of Hatton National Bank (HNB) on Friday has brought with it several interesting developments.

Harry J resigned from the HNB Board in December 2011 after being on it for over 20 years. Harry-controlled companies own 18.3% voting shares and 15% of total capital. A nominee to look after this interest was only logical and for Ms. Sanjeewani Jayawardena, HNB is the second listed company Board appointment. She is already a Director on Lanka Milk Foods (CWE) Plc, which is also controlled by Harry J.

The entry of Harry J’s daughter to HNB also makes it perhaps the only listed company to have the most number of women on its Board. HNB’s Chairperson is Dr. Ranee Jayamaha, former Deputy Governor at Central Bank, whilst the HNB Board also has Rose Cooray, also formerly from Central Bank and appointed much before the entry of Jayamaha, and Pamela Cooray, the wife of the late Chrisantha J. Cooray, former HNB Chairman.

Ms. Jayawardena’s appointment as a Non-Executive and Non-Independent Director on HNB Board also comes hot on the heels of Sampath Bank appointing the daughter of immediate past Chairman Arthur Senanayake, Annika Senanayake, to its Board.

Unlike Jayawardena, Senanayake doesn’t hold a big stake but 709,113 shares in Sampath, up from 653,142 shares in 2010.





However, Senanayake had been on the Sampath Board since its inception 25 years ago.

Though the entry of daughters of business leaders/shareholders had raised concerns in some quarters, appointment of kith and kin is common at most family-owned or family-controlled listed companies.

However, both Ms. Jayawardena and Ms. Senanayake are highly qualified and their entry is likely to be very positive to the respective Boards.

Jayawardena holds a B.A. (Commercial Law, Criminology, Sociology) from the Monash University, Australia, Professional Certificate in Marketing (CIM), Diploma in Marketing (CIM) and a Professional Postgraduate Diploma in Marketing (CIM). She is also a Certified Auditor (DNV-Norway), a Member (CIM – London) and an Associate of Chartered Institute of Marketing (ACIM – London).

Among other directorates held by her include Lanka Dairies (Pvt) Ltd., Ambewela Livestock Company Ltd., Pattipola Livestock Company Ltd., Ambewela Products (Pvt) Ltd. and Indo Lanka Exports (Pvt) Ltd., since 2009. She has also worked as an Intern for the Clinton Foundation in 2008.

Ms. Senanayake is a Graduate of the University of Nottingham in United Kingdom.

She is also the Chief Executive Officer of ART Television Broadcasting Company (Pvt) Limited and IWS Geographical Information Systems (Pvt) Ltd., and serves as a Director of IWS Holdings (Pvt) Limited, heading the corporate planning for the group in diversified business interests in telecommunications, broadcasting, aviation, automobiles, shipping, warehousing and logistics support services, packing and food processing industries.

HNB on Friday also announced the appointment of Rusi S. Captain as a Non-Executive, Non-Independent Director to its Board. The Captains as at end 2011 held 5.84% of voting shares whilst in the first quarter of 2011 they have bought in more shares as well.

Rusi a few years ago served on the Board of JKH in which the Captains are the biggest shareholder with a much bigger stake than at HNB.

Another new face on the HNB Board is Damien Fernando. Though he has previously worked in several of Harry J companies Fernando has been categorised as a Non-Executive Independent Director.

PricewaterhouseCoopers Sri Lanka Partner and top professional Sujeewa Mudalige was the other new member of the HNB Board as a Non-Executive Independent Director.

With the latest appointments, the HNB Board comprises 11 members of which seven are Independent Non-Executive Directors. HNB’s Board members are Dr. Ranee Jayamaha (Chairperson), Rajendra Theagarajah (Managing Director/CEO), Pamela C. Cooray, N.G. Wickremeratne, Rose Cooray, Dr. W.W. Gamage, Dr. L.R. Karunaratne, Damien Fernando, Sujeewa Mudalige, D.S.C. Jayawardena and Rusi Captain.