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Part II · Resolution Measures

19. Effect of taking control by the Administrator

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

The Administrator appointed under section 18

shall assume control of all the assets, rights, business and affairs of the licensed bank subject to resolution, and carry on the business and affairs of that licensed bank in the name and on behalf of the licensed bank, until the expiry of the period of time specified in the Order referred to in subsection (1) or subsection (4) of that section or until such time any such Order is revoked.

(2)

Upon the appointment of an Administrator, it shall be the duty of all the directors and employees of the licensed bank subject to resolution, to submit the details of all property, business and affairs of such licensed bank to the

Administrator and assign the control of such property, business and affairs to the Administrator.

(3)

Without prejudice to the provisions of paragraph (b)

of subsection (4), the directors and employees of a licensed bank subject to resolution, shall provide the Administrator with all such facilities as may be required to carry on the business and affairs of such licensed bank.

(4)

During the period within which an Order made by the

Central Bank in respect of a licensed bank under section 18

is in force-

(a)

all the duties and functions of such licensed bank, its directors, and shareholders under any written law for the time being in force and the respective constituent documents of such licensed bank, shall be vested with the Administrator;

(b)

any director, key management personnel or an employee of such licensed bank shall not, either directly or indirectly, engage in any activity in relation to, or for and on behalf of, the licensed bank, except as may be required or authorized by the Administrator; and

(c)

any remuneration of whatever nature shall not accrue or be payable to any director, key management personnel or an employee of such licensed bank, except with the prior written approval of the Administrator.

Read on from s 20

Part III

Sri Lanka Deposit Insurance Scheme

Read on from Part III

Part IV

Financial Sector Crisis Management Committee

Read on from Part IV

Part V

Winding Up of Licensed Bank

Read on from Part V

Schedules