Skip to content
srilawsby aturio
As enacted
Contents

4. Amendment of section 51 of the principal enactment

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

Section 51 of the principal enactment is hereby amended as follows: -

(1)

by the insertion immediately after subsection (1)

thereof, of the following new subsection: -

“(1A) A company shall not issue a share warrant to bearer or bearer share irrespective of whether its articles of association purport to authorise it to do so.

For the purposes of this subsection -

“share warrant to bearer”

means a negotiable instrument whose ownership is determined by possession of the issued physical warrant certifi cate, and any other similar warrant or instrument without traceability, but does not include –

(a)

any instrument that only confers rights to subscribe for shares in a company under specifi ed conditions, but not ownership or entitlement to ownership in shares, unless and until the instrument is exercised or redeemed; and

(b)

a dematerialised or registered form of warrant or any other instrument whose owners can be identifi ed; and

“bearer share” means a negotiable instrument which may contain the rights specifi ed in section 49 but whose ownership is determined by the simple possession of a physically issued share certifi cate, and any other similar instrument such as security to the bearer named in section 110(1)(b) (iii), without traceability, but does not include a dematerialised or registered form of share certifi cate whose owners can be identifi ed.”;

(2)

in sub-paragraph (i) of paragraph (a) of subsection (4) thereof, by the substitution for the words “shares issued;”, of the words “shares issued and names of the persons to whom such shares are issued;”.

Read on from s 5

Schedules