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srilawsby aturio
As enacted
Contents

Part IX

205. Eff ect of administration on directors and other agents of the company

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

(1)

The appointment of an administrator does not remove the directors of the company from office.

(2)

Subject to subsections (3) and (4), a director of a company that is in administration may not perform or exercise, or purport to perform or exercise, a function or power as an officer of the company except –

(a)

to appeal against an order made under section 190 appointing an administrator, in such manner, within such period, and with such requirements for notice of intention to appeal as may be prescribed, but the director shall not have any resort to the property of the company in connection with any such appeal subject to any order the court may make at the conclusion of the appeal;

(b)

with the prior, written consent of the administrator;

or

(c)

as expressly permitted by this Part.

(3)

The administrator may give consent under paragraph (b) of subsection (2) where it is satisfied that the performance or exercise of the function or power by the director is in the interests of the creditors as a whole.

(4)

The administrator shall not be liable in damages for declining to give consent under paragraph (b) of subsection (2).

Rescue, Rehabilitation and Insolvency

(5)

The appointment of an administrator revokes the authority of any agent of the company appointed by or on behalf of the board of the company.

Read on from s 206

Part X

Compromises

Read on from Part X

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Read on from Part XI

Part XII

Read on from Part XII

Part XIII

Read on from Part XIII

Part XIV

Cross - Border Insolvency

Read on from Part XIV

Part XV

Read on from Part XV

Part XVI

Read on from Part XVI

Part XVII

Read on from Part XVII

Schedules