The much-maligned Selendiva Investments Ltd. and its subsidiary Selendiva Leisure Investments Ltd. revealed to the Supreme Court last week that they had voluntarily commenced winding up operations in accordance with approval received from the Cabinet of Ministers.

These revelations were made before the Supreme Court on Wednesday (4) in the Fundamental Rights application No. 182/2021 instituted by Professionals’ National Front Secretary G. Kapila Renuka Perera, seeking an order prohibiting the Treasury Secretary from selling, leasing, or alienating State properties vested in Selendiva Investments.

Appearing before the Supreme Court bench comprising Justices Padman Surasena, Janak de Silva, and K. Priyantha Fernando, the instructing attorney of Selendiva Investments and Selendiva Leisure Investments informed the court that the two companies would be voluntarily winding up. 

He filed by way of a motion the certified extracts of the minutes of the meeting of the Board of Directors of Selendiva Investments held on 18 July 2023 in support of the same.

Accordingly, at the Board meeting, Group Chief Executive Officer Shamahil Mohideen and Chief Financial Officer Sudarshan Sri Rayen had informed the Board of Directors that a letter had been sent to the Treasury Secretary on 22 December 2022, seeking a clear direction on the way forward for the two companies.

However, the Additional Director General of the Department of Public Enterprises of the Ministry of Finance had replied via a letter dated 9 February 2023 that considering the new approach taken by the Government with regard to the restructuring of State-Owned Enterprises (SOEs), both Selendiva Investments and Selendiva Leisure Investments should take steps to wind up. 

Moreover, the Additional Director General had further advised that considering the ongoing litigation involving the two companies, the winding up process should be carried out with the advice of the Attorney General.

Accordingly, Selendiva Investments had sought the advice of the Attorney General and had subsequently been informed that the company could be voluntarily wound up by way of a special resolution of the shareholders to that effect, in terms of Section 319(1)(b) of the Companies Act No.7 of 2007.

Considering the developments revealed and the decision of the Cabinet of Ministers, the Board of Directors of Selendiva Investments had, at the meeting held on 18 July 2023, arrived at the decision to commence the winding up process of Selendiva Investments and its subsidiary, Selendiva Leisure Investments.

Based on these revelations, the counsel appearing on behalf of the Secretary of the Professionals’ National Front informed the court that they would be withdrawing the Fundamental Rights application bearing No. 182/2021.