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As enacted
Contents

Part IX

253. Vacancy in offi ce of administrator or deed administrator

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

(1)

The office of administrator or deed administrator shall become vacant if the person holding that office –

(a)

resigns office under subsection (2) or (3);

(b)

dies;

,

(c)

is removed from office by the court;

(d)

in the case of an Insolvency Practitioner, has its registration as an Insolvency Practitioner suspended or cancelled;

Rescue, Rehabilitation and Insolvency 10

(e)

in the case of an administrator, sends a final report under section 242;

(f)

in the case of an administrator, is removed from office by the creditors under section 254;

(g)

in the case of a deed administrator, sends a final report under section 243; or

(h)

in the case of a deed administrator, is removed from office by the creditors or company under the terms of the deed of company arrangement.

(2)

An administrator may resign from office by giving five working days written notice in such manner as may be prescribed, of the administrator’s intention to resign, to –

(a)

the administrator’s appointer and, where the appointer was the court, the person on whose application the appointment was made; and

(b)

the creditors.

(3)

A deed administrator may resign office by giving five working days written notice in such manner as may be prescribed, of the deed administrator’s intention to resign, to –

(a)

the company; and

(b)

the creditors.

(4)

The appointer of an administrator may appoint a replacement administrator to fill a vacancy in the office of administrator, subject to –

(a)

any order of the court; and

(b)

the requirements under this Part applicable to the appointment of an administrator.

Rescue, Rehabilitation and Insolvency

(5)

On the application of a person referred to in subsection (6), the court may make an order –

(a)

where for any reason the office of administrator is vacant –

(i)

appointing a suitable replacement administrator; or

(ii)

specifying a process for the appointment of a suitable replacement administrator;

(b)

where a deed of company arrangement is in force, and as necessary –

(i)

either appointing a suitable replacement deed administrator or specifying a process for the appointment of a suitable replacement deed administrator; and

(ii)

removing a deed administrator upon appointment of the replacement deed administrator.

(6)

Any of the following persons may make an application to the court under subsection (5) –

(a)

a creditor;

(b)

any other person with an interest in the company;

(c)

the Registrar; or

(d)

the Authority.

(7)

Where a vacancy occurs in the office of administrator or deed administrator other than under paragraph (e) or (g)

of subsection (1), written notice of the vacancy shall be given, as soon as practicable, to the Registrar and Authority by the person vacating office or, if that person is unable to act, by the person’s legal representative.

Rescue, Rehabilitation and Insolvency

(8)

A person vacating the office of administrator or deed administrator other than under paragraph (e) or (g)

of subsection (1) shall, where practicable, provide such information and give such assistance to the person’s successor as the successor may reasonably request.

(9)

On the application of a person appointed to fill a vacancy in the office of administrator or deed administrator, the court may make any order that it considers necessary to facilitate the performance, exercise and discharge of the functions, powers and duties of the administrator or deed administrator, as the case may be.

(10)

Every person who fails to comply with either of subsections (7) or (8) commits an offence and shall be liable on conviction to a fine not exceeding fifty thousand rupees.

(11)

Every person who fails to comply with any court order made in terms of subsection (9) commits an offence under this subsection and shall be liable on conviction to a fine not exceeding two hundred and fifty thousand rupees .

Read on from s 254

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