146.
| (1) At the end of the financial year of a company having subsidiaries, accounts and statements (in this Act group referred to as " group accounts") dealing as hereinafter set out with the state of affairs and profit or loss of the company and the subsidiaries, shall, subject to the provisions of subsection (2), be laid before the company at a general meeting when the own balance sheet and profit and loss account of the company are so laid: |
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| (2) Notwithstanding the provisions of subsection (1), group accounts shall not be required
| | (a) where the company is, at the end of its financial year, the wholly-owned subsidiary of another body corporate incorporated in Sri Lanka; and | | |
| | (b) where the company's directors are of opinion with respect to each of the company's subsidiaries that-
| | | (i) it is impracticable, or would be of no real value to members of the company, in view of the insignificant amounts involved, or would involve expense or delay out of proportion to the value to members of the company; or |
| (ii) the result would be misleading, or harmful to the business of the company or any of its subsidiaries ; or |
| (iii) the business of the holding company and that of the subsidiary are so different that they cannot reasonably be treated as a single undertaking: |
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| (3) Where any person being a director of a company fails to take all reasonable steps to secure compliance with the provisions of this section as respects the company, he shall be guilty of an offence and shall, in respect of each offence, be liable to a fine not exceeding two thousand rupees or to imprisonment of either description for a term not exceeding six months or to both such fine and imprisonment: |
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| (4) For the purposes of this section, a body corporate shall be deemed to be the wholly-owned subsidiary of another if it has no members except that other and that other's wholly-owned subsidiaries and its or their nominees. |
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Sri Lanka Consolidated Acts