Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XII
358. Appointment of a special manager
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
On the application of a liquidator or provisional liquidator, the court shall make an order appointing a special manager, where the court is satisfied that the condition in subsection (2) is met.
Rescue, Rehabilitation and Insolvency
The condition referred to in subsection (1) is that the nature of the affairs, business or property of the company, or the interests of the creditors or contributories generally, require the appointment of a special manager.
In deciding whether or not the condition in subsection (2) is met, the court shall have regard to whether or not the applicant can exercise a reasonable level of personal control over the entirety of the affairs, business or property of the company.
In making an order under subsection (1) the court may, as may be necessary, make any other ancillary order.
A special manager appointed by an order made under subsection (1) shall –
act during such time as may be specified in the order, which may be –
for a fixed period;
until the occurrence of a specified event; or
until the court makes a further order.;
have such powers and duties as may be specified in the order;
prepare such accounts as may be prescribed;
send the accounts referred to in paragraph (c) to such persons, in such manner, and within such periods as may be prescribed; and
be entitled to receive such remuneration as may be determined by the court.
A special manager appointed by an order made under subsection (1) shall be an officer of the court.
Rescue, Rehabilitation and Insolvency
The appointment of a special manager shall not take effect until the person to be appointed has given the applicant security, for the appointment, that complies with such requirements as may be prescribed.
A special manager shall, as soon as practicable and in any event within five working days after being appointed, give notice of the appointment to such persons and in such manner as may be prescribed.
The appointment of a special manager may be terminated by the court on the application of –
the special manager;
a provisional liquidator; or
a liquidator.
A liquidator or provisional liquidator, whichever holds office, shall apply to the court for an order terminating the appointment of a special manager where –
section 302 applies to the company and the shareholders decide, by special resolution, that the appointment should be terminated; or
section 302 does not apply to the company and the creditors decide, by resolution, that the appointment should be terminated.
On an application under subsection (9), the court may –
may make an order terminating the appointment of the special manager; and
in making such an order, may, as may be necessary, make any other ancillary order.
Rescue, Rehabilitation and Insolvency
Within five working days after the appointment of a special manager terminates, the special manager shall give notice of the termination to such persons and in such manner as may be prescribed.
Part XIII
Part XIV