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The Securities and Exchange Commission (SEC) has ruled that there have been no parties acting in concert in the dispute between Richard Pieris and Company, Asia Capital and investor Dr. Sena Yaddehige.

In a statement released last week the SEC said it had received complaints alleging that the Mandatory Provisions of the commissions' Takeovers and Mergers Code had been triggered in respect of these companies by a number of individuals acting in concert.

The SEC says it conducted investigations in two phases into these complaints. In the first examination, it found that there was no evidence to support the claim of acting in concert. Then after fresh evidence was presented from overseas, the SEC reopened the case and with the help of overseas regulators, found that that no parties were acting in concert.

Yaddehige is locked in a court battle with Dirk Flamer-Caldera and Richard Pieris over the number of seats the investor who has bought into these companies, is given on the respective boards. Richard Pieris' original shareholders sued the investor for acting in concert and the High Court referred the matter to the SEC. Richard Pieris and Flamer-Caldera then went before the Supreme Court to appeal against this order. Earlier last week the Supreme Court allowed the appeal.

The Court also issued an interim order asking that Yaddehige be allowed to nominate five members to the 11-member Richard Pieris Board of Directors and four to the nine-member Asia Capital Board. Management control however remains with the original stakeholders and that will retain the status quo of the companies. The interim order also frees the shareholders to dispose their shares if they so wish.

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