Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XII
308. Creditors’ committee in liquidation
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
This section shall not apply to a company for so long as section 302 applies to the company.
At any time during a liquidation and if a liquidation creditors’ committee has not already been established, a liquidator –
shall seek the establishment of a liquidation creditors’ committee, if so requested by a creditor in such manner as may be prescribed;
may seek the establishment of a liquidation creditors’ committee, on the liquidator’s own motion.
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The establishment of a liquidation creditors’
committee and appointments to such a committee require one or more resolutions of creditors adopted at a meeting of creditors –
which, in the case of a request made under paragraph (a) of subsection (2), the liquidator shall hold within seven working days after the liquidator receives the request; and
the notice of which shall –
summarise the matters referred to in this section; and
invite nominations for membership of the liquidation creditors’ committee.
The Fifth Schedule shall apply to a meeting referred to in subsection (3).
If established, a liquidation creditors’ committee –
shall have the following functions :–
to consult with the liquidator about matters relating to the liquidation; and
to consider reports from the liquidator sent under subsection (6); and
may not give directions to the liquidator.
If a liquidation creditors’ committee is established, the liquidator shall send reports to the committee containing such information, in such manner, and within such periods as may be prescribed.
A person shall not be eligible to be a member of a liquidation creditors’ committee unless the liquidator is satisfied that the person is –
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a creditor;
the agent of a creditor under a general power of attorney; or
authorised in writing by a creditor to be a member.
With respect to a liquidation creditors’ committee, the following matters shall be subject to such requirements, restrictions and limitations as may be prescribed : –
membership and termination of membership of the committee;
notice of the establishment of the committee and of matters relating to the committee;
the procedure for convening meetings of the committee;
protection of acts, omissions or decisions done or made by members of the committee;
reimbursement of expenses of members of the committee; and
transactions by members of the committee and their related parties.
The consequences of defects in the qualifications, nomination or election of members of a liquidation creditors’
committee shall be as may be prescribed.
Where, by reason of vacancies in a liquidation creditors’ committee, the committee is unable to act, the liquidator shall as soon as practicable give written notice of that fact to each known creditor.
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Part XIII
Part XIV