3. Appointment of a Competent Authority

Official English translation. The Sinhala text prevails.

(1)

The Cabinet of Ministers shall appoint in respect of the Underperforming Enterprise or each one or more of the Underutilized Assets as the case may be, vested in the

Secretary to the Treasury by subsection (1) of section 2, a person by name or by office, to be the Competent Authority who shall control, administer and manage or ensure the revival of such Enterprise or Assets as the case may be, through alternate utilization,.

(2)

A Competent Authority appointed under subsection (1) to control, administer and manage:—

(a)

the Underperforming Enterprise specified in

Schedule I, shall take possession of all movable and immovable property of such Enterprise

(including any building belonging to or standing on land belonging to, such Enterprise, together with fixtures or fittings thereto belonging and appurtenant therewith, or treated as part and parcel thereof) and shall cause an inventory to be prepared of property wherever it is so possible, in the presence of the person, who on the day prior to the date of the vesting of such Enterprise in the

Secretary to the Treasury by subsection (1) of section 2, was the Chairman of the Board of

Directors of such Enterprise or an agent duly authorized by such Chairman;

(b)

any one or more Underutilized Assets specified in Schedule II, shall take possession of such Asset

(including any building and any fixtures or fittings which are part of such building and any building belonging to and appurtenant thereto, or treated as part and parcel thereof) and shall cause an inventory to be prepared appropriately wherever it is so possible in the presence of the person, who on the day prior to the date of the vesting of such Assets in the Secretary to the Treasury, was the owner or an agent duly authorized by such owner.

(3)

A Competent Authority shall, in the exercise, performance and discharge of his powers, duties and functions, be subject to such general and special directions of the Cabinet of Ministers as may be issued in writing from time to time, having regard to the interest of any workers and the effective management and administration of the enterprise or asset concerned in respect of which such

Competent Authority is appointed.

(4)

Subject to the provisions of subsection (3), a

Competent Authority, appointed to control, manage and administer the affairs of an Underperforming

Revival of Underperforming Enterprises or

Enterprise or an Underutilized Assets, shall wherever appropriate:—

(a)

exercise, perform and discharge, all the powers, duties and functions conferred or imposed on, or assigned to, the Board of Directors or any other body which was entrusted with the management of such Enterprise as on the date of vesting of the enterprise in terms of subsection (1) of section 2;

(b)

continue with or recommence any business activities of such Enterprise or Asset where deemed appropriate;

(c)

restructure such Enterprise or Asset so as to enhance its commercial viability;

(d)

make available to such Enterprise or Asset, the resources necessary to perform the duties referred to in paragraph (b) and (c);

(e)

ensure the maintenance of a proper accounting system in respect of the financial matters of such

Enterprise or Asset;

(f)

secure the due payment of wages to the workers of such Enterprise or Asset and due compliance by such Enterprise or Asset of all its statutory dues in relation to such workers;

(g)

meet all costs and expenses incurred in the management and administration of the affairs of such Enterprise or Asset;

(h)

take such other steps as may be necessary to ensure in the national interest the revival of such Enterprise or Asset through alternate utilization;

(i)

do such other acts as are necessary or incidental to the performance of the duties referred to above.

Read on from s 4

3. Appointment of a Competent Authority

Schedules