Can foreign companies enter into a Shareholders Agreement in Sri Lanka

Based on the context provided, there is no specific mention of a “Shareholders Agreement” for foreign companies in Sri Lanka. However, there are several references to agreements and conditions under which foreign entities may operate within the country:

  1. Intellectual Property Act, No. 36 of 2003: It allows societies to enter into agreements with foreign societies or organizations for the administration of rights in Sri Lanka or in a foreign country.
  2. Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021: It discusses the sharing of information and cooperation between the Commission and foreign supervisory authorities, which may include agreements or memoranda of understanding.
  3. Inland Revenue (Amendment) Act, No. 10 of 2021: It mentions that companies engaged in certain businesses, such as entrepot trade, offshore business, and providing front-end services to clients abroad, which have entered into an agreement with the Board of Investment of Sri Lanka, are subject to specific tax considerations.
  4. Companies Act, No. 07 of 2007: It outlines the obligations of registered overseas companies in Sri Lanka, including the requirement to state the country of incorporation in various documents and at places of business.
  5. Board of Investment of Sri Lanka Law, No. 4 of 1978: It refers to agreements entered into by companies with the Board of Investment of Sri Lanka, which may include flagship companies investing significant amounts in Sri Lanka.

These references suggest that foreign companies can enter into various types of agreements in Sri Lanka, including potentially a Shareholders Agreement, as long as they comply with the relevant laws and regulations. However, for a definitive answer on Shareholders Agreements specifically, and to ensure compliance with all legal requirements, it would be advisable to consult a licensed attorney who can provide legal advice based on the most recent laws and amendments.

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