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srilawsby aturio
As enacted
Contents

Part XVI

441. Fraudulent trading

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

(1)

Where any business of a company that has been put into liquidation or administration has been carried on with intent to defraud a creditor or another person or for any fraudulent purpose, every person who was concerned in or abetted the carrying on of the business in that manner commits an offence and shall be liable on conviction to a fine not exceeding three million rupees or to rigorous imprisonment for a term not exceeding seven years or to both such fine and imprisonment.

(2)

Where any business of a company that has been put into liquidation or administration has been carried on with intent to defraud a creditor or another person or for any fraudulent purpose, the court may, on the application of the liquidator or administrator, as the case may be, order that every person who abetted or was concerned in the carrying on of the business in that manner –

(a)

make such contribution to the property of the company; or

Rescue, Rehabilitation and Insolvency

(b)

be personally responsible for such debts and other liabilities of the company, as the court thinks fit.

(3)

In making an order under this section, the court may, as may be necessary –

(a)

impose any term or condition; and

(b)

make any other ancillary order.

Read on from s 442

Part XVII

Read on from Part XVII

Schedules