Sri Lanka Consolidated Acts

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Insurance (Special Provisions) Act (No. 22 of 1979) - Sect 2

Incorporation Order for the establishment of a subsidiary corporation

2.
(1) Where the Minister considers it desirable that the right to carry on the business of any description of insurance should be extended to any other insurer in addition to the Insurance Corporation; he may with the approval of the Government by Order (hereinafter referred to as the Incorporation Order ") published in the Gazette,
(a) declare that a subsidiary corporation of the Insurance Corporation be established for the purpose of carrying on the business of insurance of any description as may be specified in such Order";
(b) assign a corporate name to the subsidiary corporation ;
(c) determine the initial capital of the subsidiary corporation, which shall not exceed such amount as shall have been approved by Parliament;
(d) state the principal place of business of the subsidiary corporation ;
(e) fix the number of members of the Board of Directors of the subsidiary corporation ;
(f) appoint the members of the Board of the subsidiary corporation in accordance with the provisions of section 8 ;
(g) appoint one of the members of the Board as its Chairman ;
(h) appoint the date on which the subsidiary corporation shall commence business.
(2) Upon the publication of the Incorporation Order in the Gazette, a subsidiary corporation consisting of the persons who are for the time being members thereof by virtue of section 7, with the corporate name specified in such Order and with perpetual succession, shall be deemed to have been established.
(3) A subsidiary corporation may sue and be sued in its corporate name.
(4) The amount of the initial capital of a subsidiary corporation shall be paid to such corporation out of the funds of the Insurance Corporation in such instalments as the Minister may with the concurrence of the Minister in charge of the subject of Finance determine.

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