Conversion Of Government Owned Business Undertakings Into Public Corporations Act (No. 22 of 1987)

Sri Lanka Consolidated Acts

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Conversion Of Government Owned Business Undertakings Into Public Corporations Act (No. 22 of 1987) - Sect 2

Establishment of Corporations to carry on business under takings vested in the Government

(1) Where the Cabinet or Ministers considers it necessary that a corporation should be established for the purposes of taking over and carrying on any business undertaking acquired by, or vested in, the Government under the Business Undertakings (Acquisition) Act, No. 35 of 1971, the Minister may, by Order (hereinafter referred to as the Incorporation Order") published in the Gazette

	"(i) specify the business undertaking to which the Incorporation Order relates;

	(ii) declare that a corporation shall be established for the purpose of taking over, and carrying on, such business undertaking;

	(iii) assign a Corporate name to the corporation;

	(iv) specify the objects of the corporation;

	(v) state the principal place of business of the Corporation;

	(vi) specify the initial capital of the corporation having regard to the assets of the business undertaking and division of such capital into shares of various classes;

	(vii) fix the number of members of the Board of Directors of the corporation, the number so fixed being not more than five and not less than three;

	(viii) appoint the first members of the Board of Directors in accordance with the provisions of this Act;

	(ix) appoint the first Chairman of the Board of Directors in accordance with the provisions of this Act;

	(x) specify the quorum for meetings of the Board of Directors.

(2) Upon the publication of the Incorporation Order in the Gazette a corporation (hereinafter referred to as "the Corporation") consisting of the persons who are for the time being members thereof, with the corporate name specified in such Order and with perpetual succession shall be deemed to have been established.

(3) The initial capital of the Corporation specified in the Incorporation Order shall be fixed by the Minister in consultation with the Minister in charge of the subject of Finance, and having regard to the value of the assets and liabilities of the Corporation on the day immediately preceding the date of publication of the Incorporation Order in the Gazette.

(4) The Corporation may sue and be sued in its Corporate name.

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