Companies Act 2007 · As enacted · Part XIII · Administrators Appointment of Administrator
417. Power to deal with charged property &c.,
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
The administrator of a company may dispose of or otherwise exercise his powers in relation to any property of the company which is subject to a security to which this subsection applies, as if the property were not subject to the security.
Provisions of subsection (1) shall apply to any security which, when it was created, was a floating charge.
Where on an application by the administrator, the court is satisfied that the disposal (with or without other assets)
of—
any property of the company subject to a security to which subsection (1) does not apply; or
any goods in the possession of the company under a hire-purchase agreement, would be likely to promote the purpose or one or more of the purposes specified in the order appointing the administrator, the court may by order authorise the administrator to—
dispose of the property as if it were not subject to the security; or
dispose of the goods as if all rights of the owner under the hire purchase agreement were vested in the company.
Where property is disposed of under subsection (1), the holder of the security has the same priority in respect of any property of the company directly or indirectly representing the property disposed of, as he would have had in respect of the property subject to the security.
It shall be a condition of an order made by the court under subsection (3) that—
the net proceeds of the disposal; and
where those proceeds are less than such amount as may be determined by the court to be the net amount that would be realised on a sale of the property or goods in the open market, such sums as may be required to make good the deficiency, shall be applied towards discharging the sums secured by the security, or payable under the hire purchase agreement.
Where a condition imposed under subsection (5)
relates to two or more securities, that condition requires the net proceeds of the disposal and any sum mentioned in paragraph (b) of that subsection to be applied towards discharging the sums secured by those securities, in the order of their priorities.
A copy of any order made under subsection (3) shall within ten working days after the making of the order, be sent by the administrator to the Registrar.
Where the administrator fails to comply with the requirements of subsection (7), he shall be guilty of an offence and be liable on conviction to a fine not exceeding fifty thousand rupees.
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