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srilawsby aturio
As enacted
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Part VII · Management and Administration Registered Office

191. Meaning of “interested”

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), for the purposes of this Act a director of a company is interested in a transaction to which the company is a party if, and only if, the director—

(a)

is a party to or will or may derive a material financial benefit from the transaction.;

(b)

has a material financial interest in another party to, the transaction;

(c)

is a director, officer or trustee of another party to or person who will or may derive a material financial benefit from the transaction, not being a party or person that is—

(i)

the company’s holding company being a holding company of which the company is a wholly-owned subsidiary;

(ii)

a wholly owned subsidiary of the company;

or

(iii)

a wholly-owned subsidiary of a holding company of which the company is also a wholly-owned subsidiary;

(d)

is the parent, child, or spouse of another party to or person who will or may derive a material financial benefit from the transaction; or

(e)

is otherwise directly or indirectly materially interested in the transaction.

(2)

A director of a company is not deemed to be interested in a transaction to which the company is a party, if the transaction comprises only of the giving by the company of security to a third party which has no connection with the director at the request of the third party, in respect of a debt or obligation of the company for which the director or another person has personally assumed responsibility in whole or in part under a guarantee, indemnity or by the deposit of a security.

Read on from s 192

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

Read on from Part XII

Part XIII

Administrators Appointment of Administrator

Read on from Part XIII

Part XIV

Floating Charges

Read on from Part XIV

Part XV

Receivers and Managers

Read on from Part XV

Part XVI

Registrar-General of Companies and Registration Appointment of Officers

Read on from Part XVI

Part XVII

Application of Act to Existing Companies

Read on from Part XVII

Part XVIII

Overseas Companies

Read on from Part XVIII

Part XIX

Advisory Commission

Read on from Part XIX

Part XX

Companies Disputes Board

Read on from Part XX

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

Schedules