Archives

By Ravi Ladduwahetty

Richard Pieris and Co. Ltd Managing Director, Ian Pieris in response to the Daily News said that the allegations made against his company for the first time were limited to "contenders acting-in-concert", whom he alleged were "attempting to destroy a business enterprise of very long standing."

The responses, which were requested from Pieris prior to our story in the Daily News Business pages of September 6 titled "SC Capital with 19 percent, deprived of Board positions at Asia Capital" was to draw his answers to the allegations.

However, the responses came only on September 6.

"Who is making these allegations? Certainly not the shareholders.

The right to elect the management of companies is vested in the shareholders. If they want to change the management, they can do so, in a corporate democracy," he said.

Responding to an allegation that the current management despite not having the controlling interest of the company clinging on to the senior management positions, taking perks which is reportedly above Rs. 500,000 each per month, he said that the remuneration of the management is decided by a Remuneration Committee which has been in operation for 15 years.

The interview in full:

Q: There are allegations that SC Capital has been deprived of Board positions on Asia Capital despite having a 19 per cent stake of the company. Why? your comments?

A: Without entitlement there can be no deprivation!

As SC Capital is one of the parties we firmly believe who are acting in concert to take over Richard Pieris & Co. Ltd. and Asia Capital Ltd.

You would appreciate that this issue is now sub-judice and therefore I cannot make further comment on this issue, at this particular point in time.

Perhaps however, you can reveal the answer to the more important questions - who owns SC Capital? Who are the shareholders of SC Capital?

Q: Why did Dirk Flamer - Caldera sell all his RPC shares?

A: I cannot answer for Dirk Flamer Caldera who sold, more than twelve months ago, approximately 6,000 (less than 1/10th of 1%) shares of Richard Pieris shares in July 2001 out of a total Issued Capital of 23,000,000 shares. Do you really consider this a matter significant enough to invite comment.

Q: There are allegations of increase of profits by only 20 per cent in the backdrop of 50 per cent increase in turnover which has been attributed to bad operations management and/or due to making wrong investments. Your comments?

A: Who is making these "allegations." Certainly not the shareholders who have enjoyed substantial tax free dividends for a number of years. It is indeed surprising that not even one of the parties whom we believe are acting together to take over Richard Pieris & Co. Ltd. and Asia Capital Ltd. made these allegations before we went to Court. If we have achieved a 20% increase in profits and a 50% increase in turnover we should be jumping for joy. The figures you quote suggest we had unprecedented growth and therefore "operations management" must have been unbelievably efficient.

Q: How will you comment on allegations that the Pieris family not having the right to manage the company after loosing the controlling interest of the company?

A: These allegations are being made for the first time and only by the parties whom we have taken to Court. No other shareholder has commented on this issue. Perhaps the "allegations" have been designed as an attempt to destroy a successful business enterprise of very long standing.

The rights to elect the management of companies are vested in the shareholders as you know. If the shareholders wish to change the management they can do so, in a corporate democracy, by a process of election. All of us, Executive and Non Executive Directors, come up for election at our Annual General Meeting by Rotation.

Q: The current management despite not having the controlling interest of the company is alleged to be clinging on to the senior management positions including those of chairman, Managing Director, Chief Executive Officer, chief operating officer who due to the desire taking all perks of the company which is reportedly above Rs. 500,000 each per month.

A: Reported by whom? Your question is suspiciously like the pleas of the defendants to our Plaints submitted to Court and implies that only three persons enjoy remuneration packages consistent with market standards which is far from the truth! The remuneration packages of all Executive Directors including those of the Chairman and Managing Director are decided by a Remuneration Committee of Non Executive Director and Non Directors. This practice has been in place for about fifteen years. As a matter of interest the persons who have served on the Remuneration Committee are Lal Jayasundera, Chairman of Hayleys, James Mather, A Senior Partner of Ernst & Young, G. C. B. Wijeyesinghe, The Senior Partner of Ford Rhodes Thornton & Co and Nigel Austin, Former Chairman of the Employees Federation. The Executive Directors do not decide their remuneration packages.

Q: The management of the company has attributed the proportionate reduction in profits due to the backdrop of business/economic climate in the country. How do you think that other blue-chip corporate conglomerates such as Hayleys, JKH and Aitken Spence have performed to the contrary?

A: This question is inconsistent with your question 3 which "alleges" that we had enormous and unprecedented growth. We have no wish to compare ourselves with Hayleys, John Keells and Aitken Spence.

We leave those comparisons to you but my recollection is that all three had poor results. As far as I can recollect Hayleys, John Keells, and Aitken Spence, all reported significant downturns in both Turnover and Profits. I am glad however that you have elevated us to "blue chip conglomerate" status.

Q: What reason do you attribute JKH pulling out their 50 per cent equity stake from RPK Management Services?

A: This is news to me. Perhaps you know something I do not... JKH are still equal partners with the RP Group in RPK Management Services and they have never indicated to us that they wish to "pull out" of Plantations.

Q: Similarly, what reason do you attribute Rusi Captain pulling out his shares out of Asia Capital, despite being the founder?

A: You must probably know that the share market is driven by either fear or greed. What emotion has driven Rusi Captain is a question you must ask him, not me. I expect he is laughing all the way to the Bank, "the Commercial Bank."

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager