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As enacted
Contents

Part IX

217. Creditors’ Committee in Administration

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

(1)

At any time during an administration and if an administration creditors’ committee has not already been established, an administrator may, subject to subsection (2), seek the establishment of such a committee.

(2)

The establishment of an administration creditors’

committee and appointments to such a committee shall require one or more resolutions of creditors adopted at –

Rescue, Rehabilitation and Insolvency

(a)

an initial meeting;

(b)

a combined initial and outcome meeting; or

(c)

another meeting of creditors, the notice of which shall –

(i)

summarise the matters referred to in this section; and

(ii)

invite nominations for membership of the administration creditors’ committee.

(3)

The Fifth Schedule shall apply to a meeting referred to in paragraph (c) of subsection (2).

(4)

If established –

(a)

an administration creditors’ committee shall have the following functions :–

(i)

to consult with the administrator about matters relating to the administration; and

(ii)

to consider reports from the administrator sent under subsection (5); and

(b)

such a committee may not give directions to the administrator.

(5)

If an administration creditors’ committee is established, the administrator shall send reports to the committee containing such information, in such manner, and within such periods as may be prescribed.

(6)

A person shall not be eligible to be a member of an administration creditors’ committee unless the administrator is satisfied that the person is –

(a)

a creditor;

(b)

the agent of a creditor under a general power of attorney; or

(c)

authorised in writing by a creditor to be a member.

Rescue, Rehabilitation and Insolvency

(7)

With respect to an administration creditors’ committee, the following matters shall be subject to such requirements, restrictions and limitations as may be prescribed –

(a)

membership and termination of membership of the committee;

(b)

notice of the establishment of the committee and of matters relating to the committee;

(c)

the procedure for convening meetings of the committee;

(d)

protection of acts, omissions or decisions done or made by members of the committee;

(e)

reimbursement of expenses of members of the committee; and

(f)

transactions by members of the committee and their related parties.

(8)

The consequences of defects in the qualifications, nomination or election of members of an administration creditors’ committee shall be as may be prescribed.

(9)

Where, by reason of vacancies in an administration creditors’ committee, the committee is unable to act, the administrator shall as soon as practicable give written notice of that fact to each known creditor.

Read on from s 218

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