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As enacted
Contents

Part XII

326. Eff ect of liquidation on transfer of shares

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

(1)

Subject to this section –

(a)

a share in a company in liquidation shall not be transferred; and

(b)

the status of a shareholder of a company in liquidation, as to its liabilities, may not be altered.

(2)

Where –

(a)

section 302 does not apply to the company; and

(b)

the liquidator is satisfied that the transfer of a share in the company in liquidation is in the interests of the creditors as a whole, the liquidator may consent to the transfer.

(3)

The liquidator shall not be liable in damages for declining to give consent under subsection (2).

(4)

The court may, where it is satisfied that substantial injustice would otherwise result, make an order –

(a)

for the transfer of a share of a company in liquidation; or

(b)

altering the status of a shareholder of a company in liquidation, as to its liabilities.

(5)

Nothing in this section shall affect or limit the application of section 46 of the Companies Act.

Read on from s 327

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