171.
| (1) Where in connection with an investigation under the provisions of section 169 or section 170, it appears to the Registrar that there is difficulty in finding out the relevant facts about any shares (whether issued or to be debentures, issued), and that the difficulty is due wholly or mainly to the unwillingness of the persons concerned or any of them to assist the investigation as required by the Registrar, the Registrar may by order direct that the shares shall until further order, be subject to the restrictions imposed by the provisions of this section. |
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| (2) So long as any shares are directed to be subject to the restrictions imposed by the provisions of this section-
| | (a) any transfer of those shares, or in the case of un issued shares any transfer of the right to be issued there-with and any issue thereof, shall be void; | | |
| | (b) no voting rights shall be exercisable in respect of those shares; | | |
| | (c) no further shares shall be issued in right of those shares or in pursuance of any offer made to the holder thereof; | | |
| | (d) except in a liquidation, no payment shall be made on any sums due from the company on those shares, whether in respect of capital or otherwise. | | |
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| (3) Where the Registrar makes an order directing that shares shall be subject to the restrictions specified in sub section (2) or refuses to make an order directing that shares shall cease to be subject thereto, any person aggrieved by such order may appeal to the court against such order and the court may, if it sees fit, direct that the shares cease to be subject to such restrictions. |
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| (4) Any order, whether of the Registrar or court directing that shares shall cease to be subject to the said restrictions, which is expressed to be made with a view to permitting a transfer of those shares may continue the restrictions specified in paragraphs (c) and (d) of subsection (2) either in whole or in part, so far as they relate to any right acquired or offer made before the transfer. |
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| (5) Any person who-
| | (a) exercises or purports to exercise any right to dispose of any shares which, to his knowledge, are for the time being subject to the restrictions specified in subsection (2) or of any right to be issued with any such shares ; or | | |
| | (b) votes in respect of any such shares, whether as holder or proxy or appoints a proxy to vote in respect thereof ; or | | |
| | (c) being the holder of any such shares, fails to notify of their being subject to the restrictions specified in subsection (2) any person whom he does not know to be aware of that fact but does know to be entitled, apart from such restrictions, to vote in respect of those shares whether as holder or proxy, | | |
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| (6) Where shares in any company are issued in contravention of the restrictions specified in subsection (2), the company and every officer of the company who is in default shall be guilty of an offence and shall be liable to a fine not exceeding five thousand rupees. |
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| (7) A prosecution shall not be instituted under the pro visions of this section except by or with the consent of the Registrar. |
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| (8) The provisions of this section shall apply in relation to debentures as it applies in relation to shares. |
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Sri Lanka Consolidated Acts