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srilawsby aturio
As enacted
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Part V · Winding Up of Licensed Bank

72. Liquidator to prepare a winding up plan

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

(1)

Within a period of three months from the date of winding up order made under section 67, the liquidator shall prepare and submit to the Central Bank for its approval, a detailed winding up plan for the licensed bank subject to winding up.

(2)

The winding up plan referred to in subsection (1) shall include –

(a)

a current pro forma statement of financial position showing the assets and liabilities of the licensed bank;

(b)

quarterly statements of income and expenditure of the preceding period of two years and projected income and expenditure for the succeeding period of two years of the licensed bank;

(c)

a progress report on the sale and plans for the sale of major assets or groups of assets of the licensed bank;

(d)

a report on the judicial or extra-judicial pursuit of claims of the licensed bank, including any action to obtain an annulment or a declaration of invalidity of fraudulent conveyances, and the transfers made and rights created by them;

(e)

a report on offences and other illegal activities of directors or officers of the licensed bank and actions to obtain compensation for the licensed bank from such directors or officers;

(f)

a report on the continuation or termination of ongoing contracts, such as insurance, employment and service contracts of the licensed bank, including a detailed analysis of financial provisions for its employees;

(g)

a report on the liabilities of the licensed bank and a schedule of expected payments to creditors of the licensed bank during the succeeding period of three months; and

(h)

a report on actual, past and estimated future costs for the preceding and succeeding period of two years, respectively, and expenses of the winding up.

(3)

The Central Bank shall, if it is satisfied with the content of the winding up plan submitted under subsection (1), approve such plan and inform the liquidator in writing of such approval.

(4)

The liquidator shall, after the winding up plan is approved by the Central Bank under subsection (3), submit such winding up plan, together with the approval given by the Central Bank, to the court for approval.

(5)

The liquidator shall, after receiving the approval of the court for the winding up plan, publish, once a week for three consecutive weeks, a notice at least in three Sinhala,

Tamil, and English daily newspapers circulating in Sri Lanka, which shall contain information of the date when, and the place where, the winding up plan and updates of such plan will be available for inspection by the claimants of the licensed bank subject to winding up who have registered their claims under section 79.

(6)

The winding up plan approved by the court shall be updated quarterly by the liquidator.

(7)

The liquidator shall maintain proper books and records including a cost-benefit analysis of the implementation of the winding up plan and shall submit the same for the inspection of the Head of the Department established under section 4 or any officer authorized in that behalf by the

Central Bank.

Read on from s 73

Schedules