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As enacted
Contents

Part XIII · Administrators Appointment of Administrator

425. Protection of interests of creditors and share holders

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

(1)

During any time at which an administrator holds office, a creditor or shareholder of a company may apply to the court for an order under this section, on the ground that—

(a)

the company’s affairs, business and property are being or have been managed by the administrator in a manner which is unfairly discriminatory or unfairly prejudicial to the interests of the creditor or shareholder; or

(b)

any actual or proposed act or omission of the administrator is or would be unfairly discriminatory or unfairly prejudicial to the interests of such creditor or shareholder.

(2)

On an application being made to court under this section, court may, where it considers it just and equitable to do so and subject to the provisions of subsection (3), make such order as it thinks fit including, without limiting the generality of this subsection, and order—

(a)

regulating the future management by the administrator of the company’s affairs, business and property;

(b)

requiring the administrator to refrain from doing or continuing an act complained of by the applicant or to do an act which the applicant has complained he has omitted to do;

(c)

requiring the calling of a meeting of creditors or shareholders for the purpose of considering such matters as the court may direct;

(d)

discharging the administrator and making such consequential provisions as the court thinks fit.

(3)

An order under this section shall not prejudice or prevent—

(a)

the implementation of a compromise or arrangement approved under Part IX or Part X of this Act; or

(b)

where the application for the order was made more than twenty working days after the approval of any proposals or any revised proposals under section 407 or section 409, as the case may be, the implementation of those proposals or revised proposals.

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