The Companies (Amendment) Act, No. 23 of 2024, of Sri Lanka introduces several key changes to the existing Companies Act, No. 07 of 2007. Below is a summary of the amendments:
- Short Title and Commencement:
- The Act is titled the Companies (Amendment) Act, No. 23 of 2024. It will be effective on a date specified by the Minister through a Gazette notification, except for the commencement section which is effective immediately upon becoming an Act of Parliament.
- Amendment to Section 427:
- Section 427 is amended to replace the reference to the Registration of Documents Ordinance (Cap. 117) with the Secured Transactions Act, No. 17 of 2024.
- Amendment to Section 428:
- Subsection (3) is revised to align with the Secured Transactions Act, No. 17 of 2024, applying its provisions to floating charges.
- Subsection (4) of Section 428 is repealed.
- Amendment to Section 431:
- A new subsection (7) is added, specifying that the priority of floating charges on movable property will be determined according to the Secured Transactions Act, No. 17 of 2024.
- Insertion of New Section 433A:
- A new section, 433A, is inserted to define “floating charge” as a “security right” under the Secured Transactions Act, No. 17 of 2024.
- Sinhala Text to Prevail:
- In cases of inconsistency between the Sinhala and Tamil texts of the Act, the Sinhala text will prevail .
Download the Amendments: http://documents.gov.lk/files/act/2024/4/23-2024_E.pdf
