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As enacted
Contents

Part X · Approval of Arrangements, Amalgamations, and Compromises by Court

257. Court may make additional orders

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

(1)

Without limiting the powers conferred under section 256, the court may for the purpose of giving effect to any arrangement or amalgamation or compromise approved under that section, either by the order approving the arrangement or amalgamation or compromise or by any subsequent order, provide for and prescribe terms and conditions relating to —

(a)

the transfer or vesting of movable or immovable property, assets, rights, powers, interests, liabilities, contracts and engagements;

(b)

the issue of shares, securities or policies of any kind;

(c)

the continuation of legal proceedings;

(d)

the liquidation or the removal from the Register without liquidation, name and particulars of any company;

(e)

the provision to be made for persons who voted against the arrangement or amalgamation or compromise at any meeting called in accordance with an order made under paragraph (b) of subsection (2) of section 256, or who appeared before the court in opposition to the application, to approve the arrangement or amalgamation or compromise;

(f)

such other matters as are necessary or desirable to give effect to the arrangement or amalgamation or compromise.

(2)

An order made by the court under subsection (1) shall have effect according to its tenor.

(3)

Within ten working days of an order being made by the court under this section, the company shall ensure that a copy of the order is delivered to the Registrar.

(4)

Where a company fails to comply with the requirements of subsection (3)—

(a)

the company shall be guilty of an offence and be liable on conviction to a fine not exceeding one hundred thousand rupees; and

(b)

every officer of the company who is in default shall be guilty of an offence and be liable on conviction to a fine not exceeding fifty thousand rupees.

Part XI

Provisions Relating to Offshore Companies

Part XII

Winding Up

Part XIII

Administrators Appointment of Administrator

Part XIV

Floating Charges

Part XV

Receivers and Managers

Part XVI

Registrar-General of Companies and Registration Appointment of Officers

Part XVII

Application of Act to Existing Companies

Part XVIII

Overseas Companies

Part XIX

Advisory Commission

Part XX

Companies Disputes Board

Part XXI

Offences Miscellaneous Offences

Part XXII

Miscellaneous Prohibition of Partnership with More Than Twenty Members

Part XXIII

Repeals and Amendments

Schedules