Companies Act 2007 · As enacted · Part XV · Receivers and Managers
450. General duties of receivers
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
A receiver shall exercise his or her powers in good faith.
A receiver shall exercise his or her powers in a manner he or she believes on reasonable grounds to be in the interest of the person in whose interests he or she was appointed.
Without prejudice to the provisions contained in subsections (1) and (2), a receiver shall exercise his or her powers having reasonable regard to the interests of —
the grantor;
persons claiming through the grantor, interests in the property in receivership;
unsecured creditors of the grantor; and
sureties who may be called upon to fulfil obligations of the grantor.
Where a receiver appointed under an instrument acts or refrains form acting in accordance with any directions given by the person in whose interests he or she was appointed, the receiver shall be deemed not to be in breach of the duty referred to in subsection (2), but shall remain liable for any breach of the duty referred to in subsection (1) or the duty referred to in subsection (3).
Nothing in this section shall limit or affect the application of section 451.
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