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As enacted
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Part II · Markets and Market Institutions

68. Appointment of directors to a market institution

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

(1)

Notwithstanding the provisions of the Companies

Act, No. 7 of 2007, a person shall not accept appointment, reappointment, election or re-election as a director, chief executive officer or chief regulatory officer of a market institution except with the prior approval of the Commission.

(2)

Where the approval of the Commission is required under subsection (1), the Commission shall not approve, as the case may be if -

(a)

any proposed director, chief executive officer or chief regulatory officer is an undischarged bankrupt, whether within or outside Sri Lanka;

(b)

a judgment debt against the proposed director, chief executive officer or chief regulatory officer has not been satisfied in whole or in part;

(c)

the proposed director, chief executive officer or chief regulatory officer–

(i)

has been convicted, whether within or outside

Sri Lanka, of an offence, involving fraud or dishonesty or the conviction for which involved a finding that he has acted fraudulently or dishonestly;

(ii)

has been convicted of an offence under this

Act;

(iii)

during a period of three years immediately preceding such appointment has been subject to any administrative sanction by the

Commission under this Act;

(iv)

has been convicted of an offence involving moral turpitude; or

(v)

is likely to have a conflict of interest.

Read on from s 69

Part III

Issue of Securities

Read on from Part III

Part IV

Trade In Unlisted Securities

Read on from Part IV

Part V

Market Misconduct

Read on from Part V

Part VI

Finance

Read on from Part VI

Part VII

General

Read on from Part VII