Amerasekere v. Mitsui and Company Ltd., and Others – sllr 1993 volume 1 page 022

In the case between Nihal Sri Ameresekere (shareholder, plaintiff) and Mitsui & Company Ltd., Taisei Corporation, Kano Kikkau Sekkeisha Yzo Shibata & Associates, Hotel Developers (Lanka) Ltd., and certain directors (defendants), the Supreme Court addressed whether a shareholder lacking the statutory minimum shareholding could maintain a derivative action on behalf of the company, the validity of interim injunctions issued for the company’s protection, and the propriety of granting leave to appeal by the Court of Appeal. It was held that a derivative action was permissible in circumstances where company directors were unable or unwilling to act to protect the company’s interests. The District Court’s grant of interim injunctions was affirmed as proper, based on a prima facie case and the ri