As enacted

Contents

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

190. Use of information and advice

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

(1)

Subject to the provisions of subsection (2), a director of a company may rely on reports, statements, and financial data and other information prepared or supplied, and on professional or expert advice given by any of the following persons :—

(a)

an employee of the company;

(b)

a professional adviser or expert in relation to matters which the director believes to be within the person’s professional or expert competence;

(c)

any other director or committee of directors in which the director did not serve, in relation to matters within the directors or committee’s designated authority.

(2)

Provisions of subsection (1) shall apply to a director, if, and only if, the director—

(a)

acts in good faith;

(b)

makes proper inquiry where the need for inquiry is indicated by the circumstances; and

(c)

has no knowledge that such reliance is unwarranted.

(3)

The provisions contained in this Act are in addition to and not in derogation of any provisions contained in any other law relating to the duty or liability of directors or officers of a company.

TRANSACTIONS IN WHICH A DIRECTOR IS INTERESTED

Read on from s 191

Part VIII

Amalgamations

Read on from Part VIII

Part IX

Compromises with Creditors

Read on from Part IX

Part X

Approval of Arrangements, Amalgamations, and Compromises by Court

Read on from Part X

Part XI

Provisions Relating to Offshore Companies

Read on from Part XI

Part XII

Winding Up

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Part XIII

Administrators Appointment of Administrator

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Part XIV

Floating Charges

Read on from Part XIV

Part XV

Receivers and Managers

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Part XVI

Registrar-General of Companies and Registration Appointment of Officers

Read on from Part XVI

Part XVII

Application of Act to Existing Companies

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Part XVIII

Overseas Companies

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Part XIX

Advisory Commission

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Part XX

Companies Disputes Board

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Part XXI

Offences Miscellaneous Offences

Read on from Part XXI

Part XXII

Miscellaneous Prohibition of Partnership with More Than Twenty Members

Read on from Part XXII

Part XXIII

Repeals and Amendments

Read on from Part XXIII