74. Interpretation

In this Act, unless the context otherwise requires-

“associate company” when used in relation to a particular company means a company in which such particular company holds not less than twenty per centum and not more than fifty per centum of the paid up ordinary share capital;

“Board” means the Monetary Board of the Central

Bank of Sri Lanka established under the

Monetary Law Act, (Chapter 422);

“capital” means the paid up capital of a company;

“capital funds” in relation to a finance company means paid up capital and permanent free reserves and includes, if so determined by the Board, the face value of unsecured debentures and other loan bonds, which in the event of the winding up of a finance company or the return or reduction of capital shall rank after and be subordinated to deposits and other borrowings of the finance company;

“Central Bank” means the Central Bank of Sri Lanka established under the Monetary Law Act,

(Chapter 422);

“commercial bank” means a licensed commercial bank within the meaning of the Banking Act, No. 30

of 1988;

“core capital” means the aggregate of the following:-

issued and fully paid up ordinary shares or common stock and in the case of partly paid shares or stock the paid up amount:

issued and fully paid up non-cumulative, non redeemable preference shares where the payment of dividends could be reduced or waived off permanently in the event of profit being inadequate to support such payment in part or full:

the excess of issue price over the par value of the ordinary shares, common stock or non-cumulative, non-redeemable preference shares, if applicable;

amount lying to the credit of a reserve fund maintained in terms of subsection (1) of section 18 of this Act;

disclosed reserves in the form of general or other free reserves created or increased by appropriation of retained earnings, share premia or other realized surpluses as shown in the last audited statement of accounts;

accumulated profit or loss as shown in the last audited statement of accounts:

subject to any direction that may be issued by the Board any profit earned or loss incurred since the closing date of the last audited accounts including any surplus or loss after tax, arising from the sale of fixed and long term investments; and

any other capital element that meets the requirements stipulated by the Board from time to time;

the lending of money; or

the investment of money in any manner whatsoever; or

the lending of money and the investment of money in any manner whatsoever;

cash in hand;

balances in a current or deposit account in a commercial bank, free from any bankers’ lien or charge;

Sri Lanka Government Treasury Bills and

Sri Lanka Government Securities maturing within one year and free from any lien or charge;

Central Bank of Sri Lanka securities maturing within one year and free from any lien or charge;

cash balance, if any, maintained with the

such other assets as may be determined by the Monetary Board of the Central Bank of

an individual who being a member of the

in relation to a company, the holding of a beneficial interest by another company or an individual or his relative, whether singly or taken together, in the shares thereof, the paid up value of which exceeds ten per centum of the paid up capital of the company or the existence of a guarantee or indemnity for a sum not less than ten per centum of the paid up capital given by an individual or his relative or by another company on behalf of such company;

in relation to a firm, the beneficial interest held therein by an individual or his relative, whether singly or taken together, which represents more than ten per centum of the total capital subscribed by all partners of the firm or the existence of a guarantee or indemnity for a sum not less than ten per centum of that capital given by an individual or the spouse, parent or child of the individual on behalf of such firm;