Companies Act 2007 · As enacted · Part XV · Receivers and Managers
464. Liability of receiver
Official English translation. The Sinhala text prevails.
Official translationFrom Department of Government Printing, unchanged
Subject to the provisions of subsections (2)
and (3), a receiver is personally liable –
on a contract entered into by the receiver in the exercise of any of the receiver’s powers ; and
for payment of wages or salary that during the receivership, accrue under a contract of employment relating to the property in receivership and 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.
The terms of a contract referred to in paragraph (a) of subsection (1) may exclude or limit the personal liability of a receiver, other than a receiver appointed by the court.
The court may on the application of a receiver, extend the period within which notice of the termination of a contract is required to be given under paragraph (b) of subsection (1), and may extend that period on such terms and conditions as the court thinks fit.
Every application under subsection (3) shall be made before the expiry of the period referred to.
Subject to the provisions of subsection (7), a receiver is personally liable, to the extent specified in subsection (6), 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 by the grantor of property in receivership.
The liability of a receiver under subsection (5), 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 receiver, and ending on the date on which the receivership ends or the date on which the grantor ceases to use, possess, or occupy the property, whichever is the earlier.
The court may on the application of a receiver —
limit the liability of the receiver to a greater extent than that specified in subsection (6) ; or
exempt the receiver from liability under subsection (5).
Nothing contained in subsection (5) or subsection (6)
shall —
be taken as giving rise to an adoption by a receiver of an agreement referred to in subsection (5) ; or
render a receiver liable to perform any other obligation under the agreement.
A receiver is entitled to an indemnity out of the property in receivership, in respect of his personal liability under this section.
Nothing contained in this section shall —
limit any other right of indemnity to which a receiver may be entitled ;
limit the liability of a receiver on a contract entered into without authority ; or
confer on a receiver a right to an indemnity in respect of liability on a contract entered into without authority.
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