The Latest Amendments to the Companies Act, No. 07 of 2007

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:

  1. 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.
  2. 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.
  3. 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    • Subsection (4) of Section 428 is repealed.
  4. 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.
  5. 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.
  6. 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

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