Dumindha resigns, Touchwood shares slumps.

Tuesday, 01 October 2013 - 19:10

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The resignation of Parliamentarian MP R. Duminda Silva from the Board of Directors of Touchwood Investments PLC has taken a toll on the share price of the firm at the Colombo Stock Exchange.

At 12.30 p.m, Touchwood share had come down 33 per cent to 3 rupees and 40 cents.

 

The share closed Rs. 5.10 the previous day after hitting as high as Rs.6.

The announcement of the appointment of MP R Dumindha Silva to its board pushed the share prices up over 70 per cent Last Tuesday to close at Rs.3.10.

 

His decision was conveyed to TWOD Directors and Company Secretaries as well as the Securities and Exchange Commission.

 

MP R Dumindha Silva in his letter announcing the decision to step down has said the economic and social impact of what TWOD is striving to achieve were key reasons for his original decision to accept the invitation to join the Board.

           

MP R Dumindha Silva said the TWOD management and Board need to resolve on an urgent basis.

 

He has noted with concern the suspension issued on the trading of shares of TWOD with immediate effect following the company’s AGM; media reporting that yet another investigation has been instituted by the SEC and media reporting intimating that both the Chairman and the CEO of the company have relinquished their respective executive offices thus remaining as Non Executive Directors.

 

MP R.Dumindha Silva also stated in his letter that Under these circumstances he was reluctantly compelled to submit his resignation as a Non Executive Independent Director of the company with immediate effect.

 

He also wished the company and Board of Directors the very best in its future endeavours.

 

In the letter however he has acknowledged the core objectives of TWOD encompassing the development of sustainable harvestable timber resources, reforestation and agricultural products as “laudable” initiatives in the context of global warming, climate change and improving Sri Lanka’s export agricultural performance.

 

Soon after his appointment last Tuesday, some investors took strength and hoped for a decisive revival fuelling a sharp rise in TWOD’s shares.

 

On the same day the TWOD share price shot up by 72% to Rs. 3.10. Some shareholders at TWOD’s AGM on Thursday even hailed MP R Dumindha Silvas appointment.

 



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