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Contents

Part XIII

399. Vacancy in offi ce of receiver

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

(1)

The office of receiver shall become vacant if the person holding that office –

(a)

resigns office under subsection (2);

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(b)

dies;

(c)

is removed from office by the court;

(d)

has the person's registration as an Insolvency

Practitioner been suspended or cancelled; or

(e)

sends a copy of a report, required to be prepared under paragraph (b) of subsection (1) of section 391 to the Registrar and Authority under section 393.

(2)

A receiver appointed under an instrument under subsection (1) of section 372 may resign office, by giving five working days written notice of the receiver’s intention to resign to the person by whom the receiver was appointed, in such manner as may be prescribed.

(3)

A receiver appointed by the court under subsection (1) of section 373 shall not resign office except with the permission of the court.

(4)

Where a vacancy occurs in the office of receiver, other than under paragraph (e) of subsection (1) –

(a)

written notice of the vacancy shall as soon as practicable shall be given to the Registrar and

Authority by the person vacating office or, if that person is unable to act, by the person’s legal representative; and

(b)

within twenty working days after the vacancy occurring, either –

(i)

if the person vacating office was appointed under an instrument under subsection (1)

of section 372, the appointer may appoint a replacement receiver under that subsection;

or

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(ii)

if the person vacating office was appointed by the court under subsection (1) of section 373, the applicant may apply to the court for the appointment of a replacement receiver under that subsection.

(5)

The receivership shall end where a vacancy occurs in the office of receiver other than under paragraph (e) of subsection (1) and –

(a)

within twenty working days after the vacancy occurring, neither an appointment nor an application under paragraph (b) of subsection (4) has been made; or

(b)

an application has been made under subparagraph (ii) of paragraph (b) of subsection (4) and the application is refused.

(6)

A person vacating the office of receiver other than under paragraph (e) of subsection (1) shall where practicable, provide such information and give such assistance to the person's successor as the successor may reasonably request.

(7)

On the application of a person appointed to fill a vacancy in the office of receiver, the court may make any order that it considers necessary to facilitate the performance, exercise and discharge of the receiver’s functions, powers and duties.

(8)

Every person who fails to comply with either paragraph (a) of subsections (4) or (6) commits an offence under this subsection and shall be liable on conviction to a fine not exceeding fifty thousand rupees.

(9)

Every person who fails to comply with any court order made in terms of subsection (7) commits an offence under this subsection and shall be liable on conviction to a fine not exceeding two hundred and fifty thousand rupees.

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