Where chairmen are also CEOs

Many of the country’s top business conglomerates where the chairman was also the chief executive officer (CEO) have announced the appointment of Senior Independent Directors to conform to a new rule of the Colombo Stock Exchange that is now effective.

This includes Distilleries Company of Sri Lanka PLC and Aitken Spence PLC where business tycoon Harry Jayawardena has given up executive responsibilities but remains chairman in a non-executive capacity.

At John Keells Holdings PLC, Mr. Krishan Balendra will remain Chairman/CEO while Mr. Nihal Fonseka as been named as Senior Independent Director.

“It is the view of the Board, and our experience has proven that the JKH Board composition of a majority of Non-Executive Independent Directors, coupled with the role of the Senior Independent Director, and other supporting Board dynamics have enabled the Chairperson-CEO to effectively balance the dual role as the Chairperson of the Board and the CEO of the Company, particularly given the diversified conglomerate structure of the John Keells Group. We wish to affirm that the Company will continuously strive to develop its governance frame,” JKH said in a Stock Exchange filing.

The Hayleys Group has made similar arrangements with regard to several of its companies with Mr. Mohan Pandithage remaining chairman and CEO of group companies where Senior Independent Directors have been named. Dr. Harsha Cabraal will remain Senior Independent Director of Hayleys PLC, the holding company. Other Hayleys companies too have filled these positions.

At LOLC where Mr. Ishara Nanayakkara has been the deputy chairman in an executive capacity and the position of chairman has not been filled since the passing of his father, Mr. Rajah Nanayakkara, he will continue in this role. Mr. Dharmasiri Peiris has been named Senior Independent Director.

Severl other listed companies have made similar arrangements communicated to the CSE through stock exchange filings.