Companies Act 2007 · As enacted · Part XXII · Miscellaneous Prohibition of Partnership with More Than Twenty Members
521. Grant of isnterim relief
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
Subject to the provisions of subsections (2)
and (3), pending the making of a final order in any application or reference to court made under this Act, the court may on the application of a party to the proceedings, make such interim order, including a restraining order, as it thinks fit.
Such order may at the discretion of the court, be made ex-parte or after notice to the respondent. The respondent may make an application for an order of revocation or variation of the ex-parte order, with notice to the petitioner.
The court shall not grant a restraining order or any other form of interim order under this Act on the application of a shareholder, former shareholder or a director, unless the applicant has first lodged with the court an undertaking in writing that if the order sought is granted, and the company or any other person suffers loss or damage which the court considers as just and equitable for the applicant to bear, the applicant will indemnify the company or other person against that loss or damage.
The court shall, before or at the time of granting a restraining order or any other form of interim order, fix the amount of security which the applicant shall provide for the undertaking given under subsection (2). Security may be provided by depositing funds with the court or by providing a bank guarantee or in such other manner as the court may consider sufficient.
The court may from time to time, on the application of the company or any other person who may suffer loss or damage as a consequence of the making or continuation in force of an interim order, increase the amount of security to be provided by the applicant for the undertaking given under subsection (2). Where an order for an increase in the amount of security to be provided is made, it shall be a condition of the continuation of the interim order, that the increased security be provided within a period specified by the court.
The court may make such orders as it think just and equitable—
by way of enforcement of an undertaking given under subsection (2) ;
for the payment out to any person of funds deposited as security under subsection (3) ;
for the investment in an interest bearing bank account, of any funds deposited as security under subsection (3).
Part XXIII