Ceylon Hotels Corporation (Repeal) Act 2007 · As enacted
1. Short title and date of operation
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
This Act may be cited as the Ceylon Hotels
Corporation (Repeal) Act, No. 25 of 2007. The Minister may by Order published in the Gazette appoint a date (hereinafter referred to as the “appointed date”) which date shall be the date from which the repeal of the Ceylon Hotels Corporation
Act, No. 14 of 1966, shall take effect.
Notwithstanding the repeal of the Ceylon Hotels
Corporation Act, the Minister shall, in consultation with the
Minister in charge of the subject of Finance, direct the
Registrar of Companies, under subsection (1) of section 2 of the Conversion of Public Corporations or Government Owned
Business Undertakings into Public Companies Act, No. 23 of 1987, to incorporate a company to take over the functions of
Ceylon Hotels Corporation as specified in the direction. The company incorporated in pursuance of such direction shall be designated as the “Ceylon Hotels Corporation Limited”.
The provisions of the Conversion of Public Corporations or
Government Owned Business Undertakings into Public
Companies Act, No. 23 of 1987, shall apply to and in relation to the Ceylon Hotels Corporation Limited :
Provided however, the provisions of subsection (3) of section 2 of the Conversion of Public Corporations or
Government Owned Business Undertakings into Public
Companies Act, No. 23 of 1987 shall have no application to the vesting of the ordinary and preference shares held by the
Ceylon Hotels Corporation on the day immediately preceding the appointed date and accordingly the ordinary and preference share structure applicable on such date shall continue to be applicable to the share structure of the Ceylon
Hotels Corporation Limited, with effect from the appointed date :
Provided further that—
the shareholders of the Ceylon Hotels Corporation on the date immediately preceding the appointed date shall with effect from the appointed date continue to be the shareholders of the Ceylon Hotels
Corporation Limited ; and
the Directors of the Ceylon Hotels Corporation holding office on the date immediately preceding the appointed date shall with effect from the appointed date be deemed to be the first Directors of the Ceylon Hotels Corporation Limited.
Every reference to the “Ceylon Hotels Corporation”,
“shareholders of the Ceylon Hotels Corporation” and “the
Directors of the Ceylon Hotels Corporation ” in any written law, notice, notification or other document shall be read and construed as a reference respectively to “the Ceylon Hotels
Corporation Limited”, “shareholders of the Ceylon Hotels
Corporation Limited” and “the Directors of the Ceylon Hotels
Corporation Limited ”.
The officers and servants of the Ceylon Hotels
Corporation holding office on the day immediately preceding the appointed date shall, with effect from the appointed date, be offered employment in the Ceylon Hotels Corporation
Limited on terms and conditions not less favourable than those enjoyed by them on the day immediately preceding the appointed date.
The taking over of employment in the Ceylon Hotels
Corporation Limited by an employee of the Ceylon Hotels
Corporation, shall for purposes of the Termination of
Employment of Workmen (Special Provisions) Act, No. 45 of 1971, be deemed not to be a termination of the service of such employee by the Ceylon Hotels Corporation.
An officer or servant referred to in paragraph (a), who wishes to opt out of service in the Ceylon Hotels Corporation
Limited may do so within three months from the date on which he was notified of the available offer of serving in the
Ceylon Hotels Corporation Limited. If an officer or servant exercises his option not to accept the offer, he shall be paid compensation under a voluntary retirement scheme to be implemented in that behalf, with the approval of the Cabinet of Ministers.
An officer or servant who retires under the voluntary retirement scheme referred to in paragraph (c) shall, being a member of the Employees’ Provident Fund be paid in terms of the provisions of sub-paragraph (ii) of paragraph (f) of subsection (1) of section 23 of the Employees’ Provident
Fund Act, No. 15 of 1958, the total amount lying to the credit in the individual account of such officer or servant in such
Fund, as soon as may be practicable after such officer or servant retires obtaining compensation, under such voluntary retirement scheme.
The Secretary to the Treasury may, with the prior approval of the Cabinet of Ministers dispose of the remaining preference shares after converting them to ordinary shares of the Ceylon Hotels Corporation or of any rights over such shares, other than ten per centum of the shares which shall in the manner directed by the Minister, be distributed among the employees of the Ceylon Hotels Corporation, who on the day immediately preceding the appointed date are so employed, and such shares shall be vested in the Employees’
Provident Fund and the Employees’ Trust Fund, in the name of such employees.
Notwithstanding anything to the contrary in any other written law the Memorandum and Articles of Association of the Ceylon Hotels Corporation Limited, shall contain provisions to the effect that the Board of Directors of the
Ceylon Hotels Corporation Limited shall include a member of the Board of Trustees of the Employees’ Trust Fund.