191.
| (1) Where in proceedings for the recovery of any payment as having, by virtue of the provisions of subsections (2) and (3) of section 189 or subsections, (1) and (3) of section 190, been received by any person in trust, it is shown that-
| | (a) the payment was made in pursuance of any arrangement entered into as part of the agreement for the transfer in question, or within one year before or two years after that agreement or the offer leading thereto ; and | | |
| | (b) the company or any person to whom the transfer was made was privy to such arrangement, | | |
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| (2) Where in connection with any such transfer as is referred to in section 189 or section 190-
| | (a) the price to be paid to a director of the company whose office is to be abolished or who is to retire from office for any shares in the company held by him, is in excess of the price which could at the time have been obtained by the holders of like shares; or | | |
| | (b) any valuable consideration is given to any such director, the excess or the money value of the consideration, as the case may be, shall, for the purposes of the provisions of that section, be deemed to have been a payment made to him by way of compensation for loss of office or as consideration for or in connection with his retirement from office. | | |
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| (3) Any reference in the provisions of section 189 or sec tion 190 to any payment made to any director of a company by way of compensation for loss of office, or as consideration for or in connection with his retirement from office, does not include any bona fide payment by way of damages for breach of contract or by way of pension in respect of past services. |
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| (4) Nothing in the provisions of section 189 or section 190 shall be taken to prejudice the operation of any rule of law requiring disclosure to be made with respect to any such payments as are therein referred to or with respect to any other like payments made or to be made to the directors of a company. |
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Sri Lanka Consolidated Acts