Sri Lanka Consolidated Acts

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Companies Act (No. 17 of 1982) - Sect 385

Provisions as to information where receiver or manager appointed

385.
(1) Where in the case of a company registered in Sri Lanka, a receiver or manager of the whole or substantially the whole of the property of the company (hereafter in this section and in section 386 referred to as " the receiver") is appointed on behalf of the holders of any debentures of the company secured by a floating charge, then subject to the provisions of this section and section 386.
(a) the receiver shall forthwith send notice of his appointment to the company ; and
(b) there shall, within fourteen days from the date of receipt of the notice, or such longer period, not exceeding three months as may be allowed by the court or allowed with the previous consent of the Registrar, be made out and submitted to the receiver in accordance with the provisions of section 386, a statement in the prescribed form as to the affairs of the company ; and
(c) the receiver shall, within two months from the date of receipt of the said statement send
(i) to the Registrar and to court a copy of the statement and his comments, if any, thereon and in the case of the Registrar, together with a summary of such statement and such comments ; and
(ii) to the company, a copy of any such comments as aforesaid or, if he does not see fit to make any comment, a notice to that effect; and
(iii) to any trustees for the debenture holders on whose behalf he was appointed and, so far as he is aware of their addresses, to all such debenture holders a copy of the said summary,
(2) The receiver shall within two months, or such longer period as the court may allow, after the date of expiration of the period of twelve months from the date of his appointment and of every subsequent period of twelve months, and within two months or such longer period as the court may allow, after he ceases to act as receiver or manager of the property of the company, send to the Registrar, to any trustees for the debenture holders of the company on whose behalf he was appointed, to the company and to all such debenture holders so far as he is aware of their addresses, an abstract in the prescribed form showing his receipts and payments during such period of twelve months or, where he ceases to act as aforesaid, during the period from the end of the period to which the last preceding abstract related up to the date of his so ceasing, and the aggregate amounts of his receipts and of his payments during all preceding periods since his appointment,
(3) Where the receiver is appointed under the powers contained in any instrument, the provisions of this section shall have effect
(a) with the omission in subsection (1), of any reference to the court; and
(b) with the substitution in subsection (2), for any reference to the court, of the reference to the Registrar,
(4) The provisions of subsection (1) shall not apply in relation to the appointment of a receiver or manager to act with an existing receiver or manager or in place of a receiver or manager dying or ceasing to act, except that, where the provisions of that subsection apply to a receiver or manager who dies or ceases to act before such provisions have been fully complied with, the references in para graphs (b) and (c) thereof to the receiver shall, subject to the provisions of subsection (5), include references to his successor and to any existing receiver or manager.
(5) The provisions of this section and of section 386, shall, where the company is being wound up, apply not withstanding that the receiver or manager and the liquidator are the same person, but with any necessary modifications.
(6) Nothing in subsection (2) shall be taken to prejudice the duty of the receiver to render proper accounts of his receipts and payments to the persons to whom, and at the times at which, he may be required to do so other than under the provisions of that subsection.
(7) Where the receiver makes default in complying with the requirements of this section, he shall be guilty of an offence and shall be liable to a fine not exceeding two hundred and fifty rupees for each day during which the default continues.


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