Companies Act 2007 · As enacted · Part XV · Receivers and Managers
468. Orders to enforce receiver’s duties
Official English translation. The Sinhala text prevails.
Official translationFrom Department of Government Printing, unchanged
An application for an order under this section may be made by —
the registrar ;
a receiver ;
a person seeking appointment as a receiver ;
the grantor ;
the grantee,
a person with an interest in the property in receivership ;
a creditor of the grantor ;
a guarantor of an obligation of the grantor ;
a liquidator of the grantor;
a receiver of the property of a grantor, in relation to a failure to comply by another receiver of the property of the grantor.
No application may be made to the court under paragraph (j) of subsection (1) in relation to a failure to comply, unless notice of such failure to comply has been served on the receiver not less than five working days before the date of the application and , as at the date of the application, there is a continuing failure to comply.
Where the court is satisfied that there is or has been a failure to comply, the court may —
relieve the receiver of the duty to comply, wholly or in part ; or
without prejudice to any other remedy that may be available in relation to a breach of duty by the receiver, order the receiver to comply to the extent specified in the order.
The court may in respect of a person who fails to comply with an order made under paragraph (b) of subsection (3), or is or becomes disqualified under section 436 to become or remain a receiver —
remove the receiver from office ; or
order that the person may be appointed to act or may continue to act as a receiver, notwithstanding the provisions of section 436.
If it is shown to the satisfaction of the court that a person is unfit to act as a receiver by reason of —
persistent failures to comply ; or
the seriousness of a failure to comply, the court shall make in relation to that person, a prohibition order for a period not exceeding five years.
A person to whom a prohibition order applies shall not—
act as a receiver in any receivership ;
act as a liquidator in any winding up ; or
act as an administrator under Part XIII.
In making an order under this section, the court may, if it thinks fit —
make an order extending the time for compliance ;
impose any term or condition ;
make any other ancillary order.
A copy of every order made under subsection (5) shall, within ten working days of the order being made, be delivered by the applicant to the Registrar who shall keep it on a public file indexed by reference to the name of the receiver concerned.
Evidence that on two or more occasions within the preceding five years —
a court has made an order to comply under this section in respect of the same person ; or
an application for an order to comply under this section has been made in respect of the same person, and that in each case the person has complied after the making of the application and before the hearing, is, in the absence of special reasons to the contrary, evidence of persistent failures to comply for the purposes of this section.
For the purpose of this section, “failure to comply”
in relation to a receiver means, a failure by a receiver to comply with a relevant duty, arising—
under the instrument or the order of the court by or under which the receiver was appointed ; or
under this or any other Act or rule of law or Rules of
Court ; or
under any order or direction of the court, other than an order to comply made under that section, and “comply”, “compliance”, and “failed to comply” shall have corresponding meanings.
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