152.
| (1) There shall be attached to every balance sheet laid before a company in general meeting a report by the directors with respect to the state of the company's affairs, the amount, if any, .which they recommend should be paid by way of dividend, and the amount if any, which they propose to carry to reserves within the meaning of the Fifth Schedule hereto. The report shall state whether any director is, directly or indirectly, interested in any contract or proposed contract with the company, and if so, shall state the nature of such interest and whether it was declared by him at a meeting of the directors as required under the provisions of section 203. |
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| (2) The report referred to in subsection (1) shall deal, so far as is material for the appreciation of the state of the company's affairs by its members and may not in the opinion of the directors be harmful to the business of the company or of any of its subsidiaries, with any change during the financial year in the nature of the company's business, or in the company's subsidiaries, or in the classes of business in which the ,company has an interest, whether as member of another company or otherwise. |
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| (3) Where any person being a director of a company fails to take all reasonable steps to comply with the requirements of subsection (1), 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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Sri Lanka Consolidated Acts