Skip to content
srilawsby aturio
As enacted
Contents

Part XIII · Administrators Appointment of Administrator

421. Liability of administrator

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 subsections (2)

and (3), an administrator is personally liable—

(a)

on a contract entered into by the administrator in the exercise of any of the administrator’s powers;

and

(b)

for payment of wages or salary that during his administration, accrue under a contract of employment entered into before his appointment, if notice of the termination of the contract is not lawfully given within ten working days after the date of appointment.

(2)

The court may, on the application of an administrator, extend the period within which notice of the termination of a contract is required to be given under paragraph (b) of subsection (1), on such terms and conditions as the court thinks fit, provided that application is made before the expiry of the period referred to in such paragraph.

(3)

Subject to the provisions of subsection (6), an administrator is personally liable to the extent specified in subsection (4) for rent and any other payments becoming due under an agreement subsisting at the date of his appointment, relating to the use, possession, or occupation of property by the company.

(4)

The liability of an administrator under subsection (3)

is limited to that portion of the rent or other payments which is attributable to the period, commencing ten working days after the date of the appointment of the administrator and ending on—

(a)

the date on which the administration ends; or

(b)

the date on which the company ceases to use, possess, or occupy the property, whichever is the earlier.

(5)

The court may, on the application of an administrator—

(a)

limit the liability of the administrator to a greater extent than that specified in subsection (4); or

(b)

exempt the administrator from liability under subsection (3).

(6)

Nothing in subsection (3) or subsection (4)—

(a)

shall be taken as giving rise to an adoption by an administrator of an agreement referred to in subsection (3); or

(b)

shall render an administrator liable to perform any other obligation under such an agreement.

(7)

An administrator is entitled to an indemnity out of the property of the company in respect of his personal liability under this section.

Read on from s 422

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