As enacted

Contents

Companies Act 2007 · As enacted · Part VII · Management and Administration Registered Office

186. Delegation of powers

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

Subject to any restrictions contained in the provisions of the articles of the company, the board of a company may delegate to a committee of directors, a director or employee of the company or any other person, any one or more of its powers other than its powers under any of the sections of this Act specified in the Sixth Schedule.

(2)

A board that delegates a power under subsection (1)

shall be responsible for the exercise of the power by the delegate as if the power had been exercised by the board, where—

(a)

the board had reason to believe before the exercise of the power, that the delegate would not exercise the power in conformity with the duties imposed on directors of the company by this Act and the company’s articles; or

(b)

the board has failed to monitor by means of reasonable methods properly used, the exercise of the power by the delegate.

DIRECTORS’ DUTIES

Read on from s 187

Part VIII