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srilawsby aturio
As enacted
Contents

Part XII · Winding Up

363. Mutual credit and set-off

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

(1)

Where there have been mutual credits, mutual debts or other mutual dealing between a company and a person who seeks or but for the operation of this section, would seek to have a claim admitted in the winding up of the company—

(a)

an account shall be taken of what is due from one party to the other in respect of those credits, debts, or dealings;

(b)

an amount due from one party shall be set-off against an amount due from the other party; and

(c)

only the balance of the account shall be claimed in the winding up or be payable to the company, as the case may be.

(2)

This section shall not apply to an amount paid or payable by a shareholder—

(a)

as the consideration or part of the consideration for the issue of a share; or

(b)

in satisfaction of a call in respect of an outstanding liability of the shareholder, made by the board or by the liquidator.

Read on from s 364

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