187.
| (1) No company shall pay a director remuneration (whether as director or otherwise), free of income tax or profits tax or otherwise calculated by reference to or varying with the amount of income tax or profits tax. or to or with the rate or standard rate of income tax or profits tax, except under a contract which is in force on the appointed date, and provides expressly, and not by reference to the articles, for payment of remuneration as aforesaid. |
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| (2) Any provision contained in a company's articles or in any contract other than a contract referred to in subsection (1) or in any resolution of a company or a resolution of the board of directors, for payment to a director of remuneration as aforesaid shall have effect as if it provided for payment, as a gross sum subject to income tax and profits tax, of the net sum for which it actually provides. |
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| (3) The provisions of this section shall not apply to remuneration due before the appointed date or in respect of a period before that date. |
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Sri Lanka Consolidated Acts