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As enacted
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Contents

Part II

196. Associated persons

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

For the purposes of this Act, two persons are associates or associated persons where the relationship between the two is –

(a)

that of an individual and a relative of the individual;

(b)

that of partners in the same partnership;

(c)

that of an entity and a person referred to in subsection (2); or

(d)

in any case not covered by paragraphs (a) to (c), such that one may reasonably be expected to act, other than as employee, in accordance with the directions, requests, suggestions or intentions of the other.

(2)

A person and an entity are associated persons where –

(a)

the person controls the entity or may benefit from fifty percent or more of the rights to income, capital or voting power of the entity –

(i)

either alone or together with persons who, under another application of this section, are associated with the person; and

(ii)

whether directly or through one or more interposed entities; or

(b)

the person, under another application of this section, is an associate of a person referred to in paragraph (a).

(3)

In this section, “relative” in relation to an individual, means the individual’s child, spouse, parent, grandparent, grandchild, sibling, aunt, uncle, nephew, niece or first cousin, including by way of marriage or adoption.

Read on from s 197

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