37.
| (1) Where the Commission is satisfied that a licensee who is -
| | (a) subject to an enforcement order made by the Commission ; Or | | |
| | (b) subject to an insolvency event, | | |
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| (2) Any person or authority in whom the management and control of an undertaking is vested under subsection (1) shall not be held liable conduct amounting to a fraudulent preference under the Companies Act, No. 17n of 1982, on the ground that it is continuing to carry on the management and control of the licensee's undertaking. |
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| (3) No order shall be made under this section without giving the relevant licensee written notice of the proposed order and affording the licensee a reasonable opportunity of being heard. |
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| (4) During such period as an order under this section is in force -
| | (a) the licensee shall not be or continue to be (as the case may be ) voluntarily or compulsorily wound up without the consent of the Commissions ; | | |
| | (b) no steps shall be taken by any person to enforce or execute a judgment or security over that licensee's property without ten days prior notice in writing to the Commission ; and | | |
| | (c) The licensee shall not exercise any of its right under the licence in relation to the undertaking or part thereof. | | |
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| (5) In this section, " insolvency event" means -
| | (a) the passing of a resolution for the winding up of a licensee other than for the purposes of amalgamation or reconstruction ; or | | |
| | (b) a licensee entering into a compromise with the licensee's creditors ; or | | |
| | (c) the suspension, by the licensee, of payment of debits or the inability of the licensee to pay the licensee's debts or the declaration of the licensee as bankrupt or insolvents ; or | | |
| | (d) the filing of a petition for the winding up of the licensee ; | | |
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Sri Lanka Consolidated Acts