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As enacted
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Part XI · Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

293. Personal Insolvency Proposers: MSME Company Debt Restructuring Arrangements

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

(1)

A personal insolvency proposer, when performing the functions of a personal insolvency proposer under this

Part —

(a)

shall not act as an agent of the MSME debtor;

(b)

is not an agent of any creditor or creditors;

Rescue, Rehabilitation and Insolvency

(c)

shall engage in the personal insolvency proposer’s professional capacity with the MSME debtor and creditors to seek, if possible, to achieve a solution which is satisfactory to both the MSME debtor and to creditors; and

(d)

shall exercise ones professional independent judgment, having regard to the provisions of this

Act and any regulation, rules, standards, codes of conduct, practice directions or guidelines, made by the Authority under section 4.

(2)

A person may serve as a personal insolvency proposer under this Part only if the person-

(a)

is qualified under section 12 to be appointed and act as a key office holder with respect to the proposed Debt Restructuring Arrangement;

(b)

has certified in writing that the person is qualified under section 12 to be appointed and act as a key office holder with respect to the proposed Debt

Restructuring Arrangement; and

(c)

has consented in writing to the appointment as a personal insolvency proposer and has not withdrawn consent at the time of appointment.

(2)

A person who, with the person’s consent, is appointed or acts as a personal insolvency proposer knowing that any of the requirements of paragraphs (a) and (b) of subsection (2)

has not been met, commits an offence under this subsection and shall be liable on conviction to a fine not less than five hundred thousand rupees and not exceeding two million rupees or to rigorous imprisonment for a term not exceeding three years or to both such fine and imprisonment.

Read on from s 294

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